Bitcoin dropped 2.83% on July 28 to trade at $63,453, its lowest price in recent weeks. The decline came as traders focused on two headwinds: expectations of a hawkish Federal Open Market Committee meeting and diminishing odds that the CLARITY Act will pass.
The FOMC factor
Markets are pricing in a more aggressive tone from the Fed when it meets next week. Higher interest rates tend to pull money out of risk assets like crypto, and a hawkish pivot could keep Bitcoin under pressure. The timing isn't great — the broader market was already skittish after a string of macro data showed inflation ticking up.
CLARITY Act odds slip
On the regulatory front, the CLARITY Act — a bill that would give crypto firms clearer rules of the road — is losing momentum in Congress. Sources tracking the legislation say its chances of passing this session have fallen sharply. That's a blow for an industry that's been banking on the bill to end years of regulatory uncertainty. Without it, the SEC and CFTC will keep fighting over who gets to police digital assets, and companies will keep operating in a gray zone.
What traders are watching
Bitcoin's slide below $64,000 broke a support level that had held for about two weeks. Volume picked up during the sell-off, suggesting the move had conviction behind it. There's no obvious catalyst for a bounce yet — the next big event is the FOMC decision, and until then, the mood is cautious. Some traders are eyeing the $60,000 area as the next floor, but that's a guess, not a guarantee.
For now, the market is waiting. The Fed speaks next week. The CLARITY Act is stuck. And Bitcoin is sitting at its lowest point in a month.
