Bitcoin Slips Below $76,000 After US Senate Rejects Crypto Bill

Bitcoin fell below the $76,000 mark on Wednesday, extending losses as traders reacted to a legislative setback in the U.S. Senate and positioned for a key Federal Reserve interest rate decision.

By 02:32 ET (06:32 GMT), Bitcoin was trading down 1.8% at $75,893.1, according to Investing.com data.

Senate Rejects Crypto Regulation Bill

The immediate catalyst for the downturn was the U.S. Senate's decision on Tuesday evening to reject the advancement of the Clarity Act. The bill, which aimed to establish a comprehensive regulatory framework for digital assets in the United States, failed in a narrow 49-50 vote.

The legislation had faced persistent delays due to disagreements among lawmakers, particularly concerning provisions on insider trading for federal officials and the treatment of stablecoin yield payments. The failure to pass the bill is seen as a setback for the industry, which has long sought greater regulatory credibility and clear operational guidelines.

Market Caution Ahead of Fed Decision

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Broader market sentiment was also cautious ahead of a Federal Reserve monetary policy announcement later in the day. The central bank is widely expected to raise interest rates by 25 basis points to combat inflation, a move that typically weighs on risk assets.

Higher interest rates increase the appeal of safer, yield-bearing investments and can diminish investor appetite for speculative assets like cryptocurrencies. The market is also focused on guidance from Fed Chair Kevin Warsh regarding the future path of monetary policy.

Altcoins Follow Bitcoin Lower

The negative sentiment spread across the wider cryptocurrency market, with most major altcoins posting losses.

• Ether (ETH), the second-largest cryptocurrency, fell 2.7% to $2,407.47.
• XRP experienced a significant slump, falling nearly 7%.
• Other major tokens, including Solana (SOL) and Cardano (ADA), were down over 3%.
• Memecoins also retreated, with Dogecoin (DOGE) down 2.7%.