Cryptocurrency prices declined during trading on Tuesday, under pressure from expectations that the Federal Reserve would raise interest rates this week, which increased pressure on high-risk assets, coinciding with a decline in optimism regarding the passage of the US Clarity Act to regulate the cryptocurrency sector.
The chances of the bill being passed this year have dropped to 18%, according to data from Polimmarket cited by Bloomberg, after several Democrats expressed reservations about the latest proposal put forward by Republicans.
This comes at a time when markets are awaiting the Federal Reserve meeting this week, amid expectations that US monetary policy decisions will affect investors' appetite for riskier assets, especially cryptocurrencies.
Bitcoin, the world’s largest cryptocurrency by market capitalization, fell by more than 2% during trading today, bringing its losses since the beginning of the year to over 11.5%, amid continued pressure on the market.
Bitcoin fell to $77,283.50, down about $1,706.50 or 2.16%, while Ethereum dropped to $2,483.16, a loss of $58.57 or 2.30%.
Ripple also performed poorly, with its price falling to $1.3982, down about $0.0646 or 4.42%.
The decline in cryptocurrencies during today's trading reflects the continued market sensitivity to expectations of US monetary policy, especially with the Federal Reserve meeting approaching, along with uncertainty about the expected regulatory framework for the digital asset sector in the United States.
