Bitcoin Faces Key Resistance as Fed Rate Hike and CLARITY Act Vote Loom
- Bitcoin (BTC) closed last week at approximately $76,800, below its critical weekly support level of $78,300.
- The US Federal Reserve is expected to raise interest rates by 25 basis points on Wednesday, bringing the benchmark rate to a range of 3.75-4%.
- The Senate will vote on the crypto CLARITY Act on Tuesday, requiring at least 60 votes to advance.
- Traders are de-risking ahead of these events, with open interest in Bitcoin decreasing by about 13.5% over the past week.
- Funding rates for Bitcoin have shown bullish trends as BTC approaches $80,000 after a negative-rate period since early March.
As Bitcoin struggles below key support levels and traders prepare for significant market events, the outcomes of both the Fed’s rate decision and the CLARITY Act vote could heavily influence market sentiment and volatility.
With Bitcoin closing below its crucial moving averages and facing potential regulatory clarity from the Senate, traders remain cautious ahead of these pivotal developments this week. (Source)
