Bitcoin slipped below US$77,000 on Tuesday as traders pulled back ahead of a key US Senate vote on crypto market structure and a Federal Reserve decision that is widely expected to deliver a fresh rate hike.
The world’s largest cryptocurrency was down 1.6% at US$76,915 by 13:24 UTC, according to the user-supplied market snapshot, while ether fell 1.4% to US$2,478.
The weakness comes as the market braces for a 2:15pm ET cloture vote on the CLARITY Act, a procedural hurdle that needs 60 votes to pass and could determine whether the legislation progresses at all.
Crypto is also facing a tougher macro backdrop. Brent crude has risen above US$106-US$108 a barrel as Middle East tensions keep energy markets on edge, while the US 10-year Treasury yield has climbed above 5%, its highest level since 2007 in some reports.
That has sharpened expectations for a 25-basis-point Fed hike on Wednesday, adding pressure to risk assets that offer no yield.
There was at least one supportive signal beneath the surface. US spot Bitcoin ETFs attracted US$159.9 million of net inflows on Sept. 14, led by BlackRock’s IBIT, even as bitcoin weakened.
For now, traders are watching whether bitcoin can hold the US$76,000-US$76,500 area, with US$75,500 and then around US$73,000 seen as the next support levels if selling deepens.
