Cryptocurrencies Slump as Senate Delays CLARITY Act; Bitcoin Drops Below $65,000
AI Podcast
On July 28, the cryptocurrency market faced a sharp correction, with Bitcoin and Ethereum falling roughly 3% and 4%, respectively. This decline was driven by news that the CLARITY Act faces potential legislative delays, dampening expectations for immediate regulatory clarity. Simultaneously, rising uncertainty ahead of the Federal Reserve’s July 28–29 FOMC meeting—marked by increased market pricing for a potential rate hike—spurred risk aversion among institutional and retail investors. These macroeconomic headwinds and policy-related setbacks have prompted significant profit-taking, testing key psychological support levels across the broader digital asset sector.
TradingKey - The CLARITY Act combined with rising pressure for a Federal Reserve rate hike triggered a collective plunge in cryptocurrencies.
On July 28, the cryptocurrency market experienced a collective plunge, with Bitcoin ( BTC) falling nearly 3% and losing the $65,000 threshold; Ethereum ( ETH) slumped nearly 4%, falling below $1,900; Binance Coin ( BNB) remained relatively resilient, falling by around 1%; other major coins all experienced varying degrees of decline.
Performance of the top 10 cryptocurrencies by market capitalization, Source: CoinMarketCap
On the news front, the highly anticipated CLARITY Act may be delayed. According to a CoinDesk report on July 28, under the schedule set by Majority Leader John Thune, the U.S. Senate will prioritize a sanctions bill against Russia and is unlikely to advance the CLARITY Act before then. John Thune explicitly stated that the CLARITY Act may not be passed before the summer recess (mid-July to late September), and the crypto industry currently views August 7 as an important window for the bill.
The delay of the bill instantly shattered the market's expectations for an "accelerated implementation of regulatory dividends," triggering profit-taking and safe-haven sell-offs by institutional funds and retail longs. In addition, the Federal Reserve (Fed) will hold its FOMC interest rate decision meeting from July 28 to 29, and market anxiety over the direction of monetary policy has further triggered short-term corrections and plunges in the cryptocurrency market. According to CME data, the market's expected probability of a Fed rate hike in July has risen to 37.9% (up from 31.5% yesterday), while the probability of keeping current interest rates unchanged stands at 62.1%.
This content was translated using AI and reviewed for clarity. It is for informational purposes only.
Recommended Articles
Comments (0)
Click the $ button, enter the symbol, and select to link a stock, ETF, or other ticker.