Bitcoin, Ethereum, XRP, Dogecoin Sink Amid Crypto Bill Failure, Rate Hike Expectations: Analyst Says 'Don

Leading cryptocurrencies tumbled on Tuesday as investors reacted to the CLARITY Act’s failure in the Senate and growing expectations of an interest-rate hike

Crypto Market Plunges

Bitcoin sank below $74,000, alongside a 27% drop in 24-hour trading volume.  Ethereum dived below $2,400, while XRP and Dogecoin plunged sharply.

The CLARITY Act died for 2026 in the Senate, falling short of the 60 votes needed to advance.

Cryptocurrency-related stocks bled, with Strategy Inc. (NASDAQ:MSTR) and Bitmine Immersion Technologies Inc. (NYSE:BMNR) closing down 5.36% and 8.39%, respectively. 

Over $660 million was erased in cryptocurrency liquidations in the past 24 hours, with $566 million coming from bullish long positions, according to Coinglass data.

Bitcoin’s open interest fell 0.72% over the last 24 hours. Interestingly, retail and whale derivatives traders increased their long exposure to BTC after the dip.

The market sentiment shifted from “Greed” to “Neutral,” according to the Crypto Fear & Greed Index.

Top Gainers (24 Hours) 

The global cryptocurrency market capitalization stood at $2.58 trillion, down 3.07% in the last 24 hours.

Stocks Fall Ahead of Potential Fed Rate Hike

The stock market moved lower on Tuesday. The Dow Jones Industrial Average shed 28.09 points, or 0.63%, to close at 52,093.11. The S&P 500 shed 0.45% to close at 7,585.73, while the tech-heavy Nasdaq Composite fell 0.78% to settle at 25,981.57.