Bitcoin Faces Critical Week as Fed Decision and CLARITY Act Vote Approach

The cryptocurrency market is bracing for a volatile week driven by two major events. On Tuesday, the U.S. Senate will hold a cloture vote on the CLARITY Act. On Wednesday, the Federal Reserve is widely expected to raise interest rates by 25 basis points, with markets assigning an 85%-90% probability to the hike following recent strong employment and inflation data. Bitcoin has retreated from $82,400 to below $78,000 as investors await clarity on whether this hike signals a broader tightening cycle.