Bitcoin fell 4% during the US trading session before stabilizing around $75,900 at 8 a.m. in London. This decline followed the US failure to advance the cryptocurrency bill known as the Clarity Act, which would have addressed legal ambiguity around whether tokens qualify as securities or commodities. The regulatory setback coincides with investors bracing for a potential Federal Reserve interest-rate hike, with traders pricing in an 85% likelihood of a rate increase on Wednesday following hot inflation data. In this context, long-end bond yields nearing 5% are creating increased competition for capital, adding pressure on speculative assets including Bitcoin. The broader crypto market remained weaker after the steep US-session declines.
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