Bitcoin fell below $75,000 after the bill failed in the Senate and the Fed's decision

Bitcoin fell below $75,000 after the US Senate failed to pass the Clarity bill, while the Federal Reserve raised interest rates for the first time in three years. Over two days, shares of major crypto companies lost up to 20%, Bloomberg reports, writes UNN.

Details

Following the Fed's decision, the largest cryptocurrency fell by 1.2% to $74,985. Crypto-related companies suffered even more: Coinbase shares lost about 16% over two days, while Circle shares fell by about 20%.

An additional blow came from the Senate's failure to pass the Clarity bill, on which the crypto industry had pinned its hopes as a foundation for creating clearer rules to regulate digital assets in the United States.

The Fed dealt the crypto market a second blow

Rate hikes traditionally create unfavorable conditions for bitcoin. According to Bloomberg, after the Fed's previous 10 rate hikes, the cryptocurrency was trading higher one month later in only two cases.

Prices may remain within a certain range and even trade lower by the end of the year as we reassess the outlook. Rate hikes are a double blow

Low liquidity also persists in the market, while investor activity is weakening. According to CoinGlass, open interest in bitcoin futures continued to decline, while Glassnode is recording a prolonged outflow of funds from cryptocurrency exchanges.

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