Bitcoin Falls as CLARITY Act Setback and Fed Decision Loom

| cryptopotato.com
Bitcoin faced strong resistance near $80,000 after briefly rising above $79,500. It was later rejected and fell to a monthly low of $75,000 after the US Senate failed to advance the CLARITY Act through a cloture vote. Bitcoin recovered slightly but remained below $76,000. Its market capitalisation declined to about $1.52 trillion, while Bitcoin dominance rose to 59%. The sell-off spread across the crypto market. Ethereum first fell below $2,500 after rejection near $2,670, then declined about 3% to roughly $2,400. XRP dropped below $1.30 after an 8% daily loss. Solana, Dogecoin, Monero and Hyperliquid fell about 3%, while Chainlink and Cardano lost roughly 5%. Stellar declined 10% to $0.175. Other cryptocurrencies, including BNB, TRX, RAIN, Zcash and Uniswap, also showed notable moves during the period. Total crypto market capitalisation fell more than 2.3% in 24 hours to below $2.6 trillion. Traders are now focused on the Federal Reserve’s interest-rate decision. The CLARITY Act setback and potential changes in monetary-policy expectations could drive further Bitcoin volatility and keep short-term crypto trading risk elevated.
Bearish
The immediate market impact is bearish. Bitcoin’s repeated rejection near $80,000, followed by a fall to $75,000, signals strong overhead resistance and weakening risk appetite. The Senate setback for the CLARITY Act has increased policy uncertainty, while the broader market capitalisation decline and sharp altcoin losses indicate defensive positioning. In the short term, traders may reduce exposure or increase hedging ahead of the Federal Reserve’s interest-rate decision. A hawkish rate signal could add pressure to Bitcoin and other digital assets by strengthening the US dollar and reducing liquidity expectations. A dovish decision could trigger a relief rebound, but the failed CLARITY Act vote remains a negative policy overhang. Over the longer term, clearer crypto legislation could support institutional participation if the bill is revived. However, until regulatory progress improves and Bitcoin reclaims the $80,000 resistance zone, rallies may attract sellers. Bitcoin dominance rising to 59% also suggests that capital is moving away from altcoins rather than entering the market broadly.