Bitcoin Pulls Back as CLARITY Act Vote and Fed Decision Loom
Bitcoin is giving back part of Monday’s rally as uncertainty over US crypto legislation and rising oil prices weigh on market sentiment.
The leading cryptocurrency climbed above $79,000 on Monday before retreating to around $77,800 during Tuesday’s Asian trading session. Bitcoin was last quoted at $76,917.31 in the supplied market data. Other major cryptocurrencies, including XRP, Ethereum and Solana, also moved lower.
XRP fell to approximately $1.42 from a high of $1.49. Despite the pullback, the payments-focused token appeared on track to form a bullish golden crossover, a technical signal that can indicate improving momentum.
Senate Crypto Vote Adds to Market Uncertainty
The latest decline comes as lawmakers continue negotiations over the Digital Asset Market Clarity Act. Democrats are seeking further changes to the legislation, despite reports that President Donald Trump had agreed to revised ethics language in a Senate draft circulated by Republicans over the weekend.
Republican Senator Cynthia Lummis of Wyoming, one of the bill’s leading supporters, expressed frustration with the continued negotiations.
The Senate is scheduled to vote Tuesday on whether to advance the legislation. The procedural vote requires 60 votes, meaning Republicans cannot pass it without support from Democrats or other senators.
The CLARITY Act would establish a clearer division of oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission. Supporters argue that the framework would reduce uncertainty for cryptocurrency businesses and investors.
However, a failed vote may not necessarily end hopes for clearer crypto regulation.
Coinbase CEO Brian Armstrong said the SEC and CFTC were prepared to move forward with their own rulemaking, suggesting that the industry could still receive regulatory guidance even if the bill does not pass.
Rising Oil Prices Put Pressure on Bitcoin
Energy markets added another source of concern for crypto traders.
West Texas Intermediate crude futures climbed to around $103 per barrel after briefly falling to approximately $100 overnight. Higher oil prices can increase inflationary pressure, potentially strengthening expectations that the Federal Reserve will maintain tighter monetary policy.
The Fed is expected to raise interest rates by 25 basis points on Wednesday, lifting its federal funds target range to 3.75%–4% from 3.50%–3.75%.
Meanwhile, the 10-year US Treasury yield was near 5% on Monday. Elevated bond yields, combined with a possible hawkish message from policymakers, could make risk assets such as Bitcoin less attractive to investors.
Bitcoin’s retreat therefore comes as traders balance hopes for progress on crypto regulation against renewed concerns over inflation, interest rates and broader market liquidity.