Key Highlights
- Total crypto market value dropped 1.21% to about $2.58 trillion as Bitcoin stayed near $75,000 and Ethereum remained below $2,400.
- The U.S. Senate voted 49-50 against advancing the bill, missing the 60 votes needed to move it toward full debate.
- Markets expected a possible 25-basis-point rate hike, while Bitcoin ETFs saw $450 million in net outflows and Ethereum ETFs recorded $141 million.
Crypto markets traded lower on Wednesday as investors awaited the Federal Reserve’s interest rate decision following the Senate’s failure to advance the CLARITY Act a day earlier.
The sell-off spread across major tokens as investors reduced risk ahead of the Fed announcement and watched for the next move in monetary policy.
According to data from CoinMarketCap, the total crypto market value has fallen by 1.21% over 24 hours to about $2.58 trillion as of September 16 (5:07 PM UTC).
The data also shows that Bitcoin is currently trading around $75,000 to $75,800, while Ethereum stayed below $2,400. XRP also remained below $1.30, and Solana traded near $97. However, even with prices falling, the Crypto Fear and Greed Index stood at 63, keeping the market in the greed zone rather than fear.
CLARITY Act setback adds to regulatory uncertainty
This decline followed the U.S. Senate’s September 15 vote on the CLARITY Act. Senators voted 49-50 against advancing the bill, leaving it short of the 60 votes needed to move the legislation toward full debate.
The vote did not formally end the bill, but it reduced hopes that a wider crypto market structure law would move forward quickly.
Fed rate decision adds to market uncertainty
The timing of the Senate vote also put the crypto market in a difficult spot ahead of the Federal Reserve decision.
The Fed was due to announce its decision at 2:00 p.m. ET on Wednesday, with Chair Kevin Warsh scheduled to speak 30 minutes later. Markets had priced in more than a 92% chance of a 25-basis-point rate increase. Such a move would take the target range from 3.50%-3.75% to 3.75%-4.00%.
Higher rates can make borrowing more expensive and give investors more reason to move money toward safer assets. That matters for crypto because digital assets are often treated as higher-risk investments.
Traders were also watching Warsh’s comments for clues about inflation, oil prices and whether more rate increases could follow. The Crypto Times is currently covering the FOMC meeting live.
ETF outflows add to crypto market pressure
Money moving out of crypto investment products added to the pressure. According to data from SosoValue, U.S. spot Bitcoin ETFs recorded about $450 million in net outflows on Tuesday, reversing the $160 million of inflows seen on Monday.
Ethereum ETFs also recorded around $141 million in net outflows after receiving $121 million on Monday and $216 million on Friday.
With the Fed decision approaching and recent ETF outflows adding to market pressure, traders are now watching how crypto prices respond to the next move in U.S. monetary policy.
Also Read: Dogecoin Price Eyes $0.093 as Open Interest Hits $1.26B
