Bitcoin dropped below $76,000 on Wednesday after the U.S. Senate rejected the Clarity Act and traders braced for a Federal Reserve rate decision. The move pushed the token through its 200-period moving average, opening the door to a deeper slide toward $73,308, while Ether, XRP and other major altcoins fell alongside it.
Bitcoin fell 1.8% to $75,893.1 by 02:32 ET on Wednesday, extending overnight losses after the Senate struck down a major crypto regulatory bill. Rising Treasury yields and worsening Middle East tensions added further pressure.
Senate vote sinks the Clarity Act
The Senate voted 49-50 against advancing the Clarity Act into law on Tuesday evening. Most Republicans backed the measure, which the Trump administration had pushed to set a broader U.S. regulatory framework for crypto.
But the act stalled over persistent disagreements on preventing insider trading by federal officials and on how it would treat stablecoin yield payments. Its failure does not rule out a later vote, though passage soon looks unlikely.
Crypto prices fell sharply once the vote failed, since the act was expected to grant the industry more regulatory credibility. Coinbase CEO Brian Armstrong argued the SEC and the CFTC could still write comparable rules without Congress, though he noted such regulations would stay exposed to shifts in the political climate.
Technical breakdown deepens the slide
Bitcoin's five-hour chart hit a fresh low of $75,861, 3.7% below its 200-period moving average, confirming an active bearish breakdown. That level cracked key short-term support, raising the odds of a deeper drop toward $73,308 if it fails to hold.
Momentum confirms the move: the MACD deepened into negative territory at -474.6, versus -307.9 previously, while the RSI read 38.8, pointing to pressure with some exhaustion.
Fed decision and altcoins in focus
Beyond Bitcoin, broader crypto prices fell as caution built ahead of a Fed decision later Wednesday. The central bank is widely expected to hike interest rates by 25 basis points, with focus on Chair Kevin Warsh's guidance for coming months.
Warsh has reiterated his commitment to the Fed's 2% annual inflation target, which could mean a hawkish tone given inflation is running well above that level. Higher rates bode poorly for crypto, since they diminish the appeal of speculative, risk-heavy assets.
Ether fell 2.7% to $2,407.47, while XRP slumped nearly 7%, extending losses after the Clarity vote failure. Solana and Cardano each fell over 3%, and Dogecoin dropped 2.7%.
Sources: Cryptocurrency News, Cryptocurrency News
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