Cryptocurrency markets are likely to see continued turbulence as traders digest the Federal Reserve’s latest rate decision alongside the failure of the CLARITY Act to clear a key Senate procedural hurdle, according to Simon-Peter Massabni, head of business development at XS.com.

Bitcoin dropped more than 2.5% to roughly $75,600 on Tuesday, with Ethereum, Solana, Cardano, and Dogecoin also posting losses.

The stalled legislation was a central driver of the selloff. Senators voted 49-50 on Tuesday, falling short of the 60 votes needed to advance the bill, which would have created a federal regulatory framework for digital assets and clarified oversight responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission.

Rising Treasury yields compounded the pressure on riskier assets, as investors pulled back from speculative holdings. The 10-year yield briefly climbed past 5%, raising the cost of holding assets that don’t generate yield—including most cryptocurrencies.

Additional headwinds came from oil prices topping $100 a barrel, ongoing geopolitical tensions, and expectations of a more restrictive monetary policy stance. Massabni said the convergence of these factors-monetary tightening, regulatory limbo, and global instability-means volatility could stay elevated for some time.

Ryan Kirkley, co-founder and CEO of Global Settlement Network, said the Senate vote had an immediate chilling effect on crypto-adjacent equities, with shares of Coinbase and Circle both sliding.

“The reaction tells us exactly how much value investors have already attached to regulatory certainty,” Kirkley said, noting that institutional investors are waiting on clear answers about which agency regulates what, how digital assets should be classified, and what roles intermediaries are permitted to play. Until those questions are resolved, he said, markets will continue pricing in the uncertainty—keeping both crypto assets and related stocks vulnerable to further swings.

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Source: https://finance.yahoo.com/markets/crypto/articles/crypto-volatility-stay-high-fed-185000456.html