Following the recent US regulatory setback the previous evening, Bitcoin is holding just below the $76,000 mark. On Tuesday evening, the US Senate effectively shelved the so-called „Clarity Act.“.
The disappointment runs deep, but the market is clearly taking the setback in stride. Even though the result represents a severe setback for the crypto industry, this does not mean that the issue of regulation in the US is off the table. Currently, it is evidently too difficult to achieve a political consensus in Washington on future rules for digital assets. In the US Senate, 49 voted in favor of the measure and 50 against. In this context, 60 votes would have been necessary.
At the same time, respect for today's Fed central bank meeting is likely to have increased. Monetary policy disappointments could come at the expense of general risk appetite and subject the recent climb to a further stress test.
Bitcoin
Investors await interest rate hike totaling a quarter of a percentage point – All eyes on Kevin Warsh
Consequently, the focus of investors this evening is on the US Federal Reserve's (Fed) key interest rate decision at 8:00 PM. Half an hour later, Fed Chair Kevin Warsh is scheduled to appear before the public. The US central banker is expected to raise the interest rate level by 25 basis points. The current level is 3.50 to 3.75 percent.
The US Federal Reserve could remain under pressure anyway given stubborn inflation in the US. Consumer prices were recently at 3.4 percent in August, and thus still significantly above the actually targeted level of 2.0 percent.
