Bitcoin is trading at $77,012.38, down 1.1% over 24 hours, fully wiping out its recent pump as markets position ahead of today’s CLARITY Act cloture vote at 2:15 PM ET. More than $100 million in leveraged positions have been liquidated over the past 12 hours as traders de-risk ahead of the Senate vote.
Why Bitcoin Is Selling Off
Analyst Michaël van de Poppe said Bitcoin is now looking to sweep recent lows amid a volatile stretch shaped by both the CLARITY Act vote and this week’s FOMC meeting. He said the price action resembles the pattern seen at the end of August, choppy consolidation followed by a sweep of the low before pushing higher again. Van de Poppe said he’d be a buyer on further weakness, calling anything below $75,700 “essentially a steal” for Bitcoin.
The immediate catalyst for today’s dip includes news that Democrats rejected the Republican CLARITY Act draft over ethics language, adding fresh uncertainty just hours before the vote. Even so, institutional demand hasn’t disappeared entirely, Bitcoin ETFs bought $160 million worth on Monday, pushing total assets back above $100 billion.
Bigger Macro Picture
According to Vikram Subburaj, CEO of Giottus.com, Bitcoin’s real test may come from the Fed rather than the Senate. A 25-basis-point rate hike is already largely priced in, with FedWatch data showing a 93% probability. The bigger risk, Subburaj said, is the Fed’s forward guidance, particularly if policymakers signal rates could stay elevated for longer.
Adding pressure, the US 10-year Treasury yield has climbed above 5%, while Brent crude sits near $107 a barrel amid ongoing Middle East tensions, both of which tend to tighten liquidity and reduce appetite for risk assets like Bitcoin.
He told Coinpedia that institutional demand has grown less consistent. Bitcoin ETFs saw a strong $730.8 million inflow on September 3, but that was followed by several sessions of outflows, a sign investors are becoming more selective rather than chasing the rally aggressively.
Levels to Watch
Subburaj’s advice for traders is to avoid excessive leverage around the Fed decision. He flagged $75,500-$76,000 as an important near-term support zone for Bitcoin, with $80,000-$80,500 as immediate resistance. A sustained move above $82,800 would strengthen the bullish structure, but until then, staggered buying remains preferable to chasing volatility in either direction.