- Bitcoin slid below $75K following the Senate’s setback on the CLARITY Act.
- BTC faced further headwinds from ETF withdrawals and uncertainty surrounding the Fed.
Trading near $75,700 on Wednesday, the leading cryptocurrency experienced another downward shift, briefly dipping under $75,000 before paring some of those losses. This retreat stems from the U.S. Senate’s failure to move forward with the CLARITY Act, substantial outflows from ETFs, and mounting cautiousness ahead of the upcoming interest-rate announcement from the Federal Reserve.
Washington provided the initial jolt on Tuesday when a procedural vote to advance the CLARITY Act failed 49-50, falling well short of the 60 votes needed. Consequently, Bitcoin fell roughly 4%, while digital asset equities, including Coinbase, also suffered sharp declines.
The downward momentum persisted into Wednesday as market participants awaited the Fed’s verdict. While a 25-basis-point rate increase is widely anticipated, attention will largely center on the central bank’s forward-looking guidance. Compounding the pressure on risk assets, the 10-year U.S. Treasury yield recently climbed above 5% to reach its highest point since 2007.
ETF Outflows Add to Bitcoin’s Selling Pressure
Support from institutional channels has likewise softened. According to SoSoValue figures, U.S. spot Bitcoin exchange-traded funds posted roughly $450.33 million in net outflows on September 15, marking their largest single-day redemption since June 25. Combined losses for Bitcoin and Ethereum ETFs totaled approximately $592 million during the trading day.
Forced liquidations have further complicated market conditions. The failed Senate vote on the CLARITY Act spurred a cascade of long-position liquidations within the crypto derivatives sector, exacerbating the slide as leveraged traders faced mandatory unwinding. Over the preceding 24 hours, more than 117,410 traders experienced liquidations amounting to $659.08 million.
Price-wise, $75,000 serves as the critical threshold to monitor. With BTC touching a low of about $74,984 earlier in the day, the market is actively testing this zone following the latest sell-off. The 4-hour chart indicates sellers maintain control as BTC trades beneath the 9-period simple moving average near $76,315, though the Relative Strength Index (RSI) has receded to 31.85, signaling that selling has grown overextended and a near-term rebound remains possible.
For stabilization to occur, Bitcoin must first reclaim the $77,000–$78,000 range. Achieving this would alleviate immediate selling pressure and return the price above the short-term moving average. Should bulls manage a stronger push, the $80,000–$82,000 band stands as the primary resistance ceiling. At present, however, $75,000 remains the pivotal level, and a decisive breach beneath it would leave the recent low of $74,984 vulnerable.
Ultimately, Bitcoin’s trajectory is being propelled by a confluence of headwinds: the CLARITY Act setback, diminished ETF demand, elevated Treasury yields, and positioning ahead of the Federal Reserve’s announcement. The subsequent major price reaction will hinge significantly on how traders interpret the central bank’s rate decision and commentary.
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