Bitcoin slid to around $75,000 in mid-September, approaching its lowest level in more than three weeks, as investors reacted to the US Senate’s failure to move forward on a major cryptocurrency regulation bill. The Clarity Act stalled in a 49–50 procedural vote, well short of the 60 votes needed to advance, and would have shifted primary oversight of digital assets to the Commodity Futures Trading Commission.
The setback has renewed uncertainty over the regulatory outlook for the crypto sector, with possible consequences for capital investment, the geographic footprint of crypto businesses, and the level of institutional participation in the US, according to analysts. Bitcoin has also been pressured by a less supportive macroeconomic environment, as higher interest rates and tighter liquidity generally dampen demand for riskier, speculative assets. The Federal Reserve is set to announce its policy decision later today, and markets broadly expect the central bank to deliver its first interest rate increase in nearly three years.
