Bitcoin Slumps Following US Senate Bill Rejection and Fed Rate Hike
· Business · LiveMint, Bloomberg, Economic Times
Bitcoin sold off and crypto-related equities declined after the US Senate failed to advance the Clarity Act on Tuesday, removing a major regulatory catalyst for the digital asset market. The downturn deepened on Wednesday when the Federal Reserve raised interest rates for the first time in three years, compounding pressures from tighter liquidity and waning retail investor interest. Bitcoin traded near $76,000 following the mid-week decision, while shares of crypto treasury firms Strategy Inc. and Strive Inc. declined. Historical data shows that short-term interest rate hikes have rarely favored Bitcoin in the immediate aftermath, with only two of the last ten Fed rate increases seeing the token higher a month later. The exact trajectory of digital asset prices through the end of the year remains uncertain.
Why it matters
The combination of stalled crypto legislation and higher interest rates creates severe headwinds for institutional and retail investors holding digital assets.
Read the original report — LiveMint
Join us on Telegram
Breaking news the moment it lands. At 10,000 members we ship the Android app.