Summary
- Bitcoin fell about 2.7 percent to roughly $63,200, extending losses across major cryptocurrencies as Asian equities, led by South Koreas Kospi, sold off sharply.
- The U.S. Senate has delayed action on the closely watched CLARITY Act to focus on a Russia sanctions bill, likely pushing any vote on crypto regulatory legislation to next week before the Aug. 8 recess.
- Analysts say bitcoin tends to move with stocks when macro and interest-rate stress is high, and they expect volatility across asset classes around the Federal Reserves rate decision Wednesday and key U.S. data on Thursday.
Bitcoin has come under pressure since the U.S. stock market closed Monday, with South Koreas Kospi leading Asian equities lower and providing risk-off cues to the cryptocurrency market.
BTC has fallen to $63,200 from nearly $65,000, a 2.7% decline that has spilled over into the broader crypto market and dragged down the likes of ether (ETH), XRP (XRP), solana (SOL), and others. The drop ends the brief resilience the market showed earlier Monday as shares in NVDA tanked on Wall Street.
The Senate has shelved the CLARITY Act to prioritize a Russia sanctions bill, making a vote on the much-awaited legislation, touted to deliver regulatory clarity and unlock massive institutional buying for digital assets, unlikely before next week. This leaves only the final days before the Aug. 8 recess.
Asian stocks cracked sharply, with South Koreas Kospi index falling 10% to its lowest level since mid-April. The index has now dropped 25% from its mid-June peak. The latest decline featured steep losses in heavyweights such as Samsung and SK Hynix. “The market is falling out of love with chipmakers at the moment and that's been a big driver of the bull market in South Korea,” InvestingLive wrote.