Leading cryptocurrencies tumbled on Tuesday as investors reacted to the CLARITY Act’s failure in the Senate and growing expectations of an interest-rate hike
Crypto Market Plunges
Bitcoin sank below $74,000, alongside a 27% drop in 24-hour trading volume. Ethereum dived below $2,400, while XRP and Dogecoin plunged sharply.
The CLARITY Act died for 2026 in the Senate, falling short of the 60 votes needed to advance.
Cryptocurrency-related stocks bled, with Strategy Inc. (NASDAQ:MSTR) and Bitmine Immersion Technologies Inc. (NYSE:BMNR) closing down 5.36% and 8.39%, respectively.
Over $660 million was erased in cryptocurrency liquidations in the past 24 hours, with $566 million coming from bullish long positions, according to Coinglass data.
Bitcoin’s open interest fell 0.72% over the last 24 hours. Interestingly, retail and whale derivatives traders increased their long exposure to BTC after the dip.
The market sentiment shifted from “Greed” to “Neutral,” according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $2.58 trillion, down 3.07% in the last 24 hours.
Stocks Fall Ahead of Potential Fed Rate Hike
The stock market moved lower on Tuesday. The Dow Jones Industrial Average shed 28.09 points, or 0.63%, to close at 52,093.11. The S&P 500 shed 0.45% to close at 7,585.73, while the tech-heavy Nasdaq Composite fell 0.78% to settle at 25,981.57.
Investors are focused on the Federal Reserve’s rate verdict expected on Wednesday, with the CME FedWatch tool pricing in a 92% chance of a rate hike.
‘Attractive Accumulation Zone’
Ali Martinez, a widely followed cryptocurrency analyst, said that Bitcoin’s short-term holder cost basis—the estimated average price paid for BTC by investors who have held their coins for less than 155 days—has historically provided “attractive accumulation zones.”
“Each time BTC touched or briefly fell below its short-term holder cost basis, it created a macro buying opportunity before the bull market resumed,” the analyst added.
Martinez said they’re waiting for a pullback to the level, currently around $71,200, before buying BTC again.
Popular cryptocurrency commentator Michaël van de Poppe expressed growing interest in the $74,000 zone as his preferred support area.
“Sweep of the lows done, fear is in the markets, and we most likely get a ton of short liquidity in the markets now too,” he added.
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