Bitcoin Price Prediction: As CLARITY Act Stalls and Fed Decision Looms, Will Bitcoin Price Continue to Fall?

TradingKey - As of the European trading session on September 16, Bitcoin (BTC) was consolidating near $75,800 following a sharp 3.25% drop on Tuesday, reflecting market caution ahead of the Federal Reserve's decision.

Crypto Bill Stalls as Fed Rate Hike Expectations Further Dampen Risk Appetite

From a fundamental perspective, the primary reason for Bitcoin's decline lies in the stalled progress of US cryptocurrency regulatory policy.

On Tuesday Eastern Time, the US Senate failed to advance the Digital Asset Market Clarity Act (CLARITY Act) as the procedural vote fell short of the 60-vote threshold required to move the bill forward, dealing another setback to plans to establish a unified regulatory framework for the US digital asset market. The bill was intended to further clarify the regulatory jurisdictions of the SEC and the CFTC over various digital assets and trading platforms, and was viewed by the crypto industry as key legislation to reduce US regulatory uncertainty.

Following the bill's failure to advance, the crypto market weakened rapidly. Bitcoin fell below $76,000, while crypto-related stocks such as Coinbase and Circle also experienced notable declines. For Bitcoin, the stalled legislation does not alter its network operations or supply mechanism, but it means market expectations for further clarity in the US crypto regulatory environment will have to be delayed. Especially after Bitcoin's sharp rebound in August, some policy tailwinds had already been priced in, so short-term profit-taking pressure increased after the bill failed to pass the procedural vote.