Bitcoin is retreating to around $77,800 after climbing above $79,000, as two very different forces pull on the market: a Senate fight over crypto rules and a fresh jump in oil prices.
The move reverses part of Monday’s rally, with the market turning cautious ahead of a Senate vote on the Digital Asset Market Clarity Act. XRP, Ether and Solana are also slipping, extending the broader pullback across major cryptocurrencies.
For Bitcoin, the timing is particularly awkward. Investors are watching Washington for a clearer rulebook at the same moment energy prices are reviving concerns about inflation and interest rates.
The Senate is expected to vote Tuesday on whether to move the Clarity Act forward. The procedural vote needs 60 votes, so Republicans cannot pass it with their votes alone.
Bitcoin Meets Washington’s Last-Minute Drama
The latest tension centers on Democrats seeking further revisions to the legislation, despite reports that President Trump had agreed to updated ethics provisions in a Senate draft Republicans circulated over the weekend as a final compromise.
Sen. Cynthia Lummis, the Wyoming Republican who has become one of the bill’s most prominent advocates, pushed back against the continued negotiations. “The Democrats want more,” Lummis said. “They always want more. If we waited another month, they would want more.”
“There’s no end to it,” Lummis added.
The proposed law would split regulatory responsibility for digital assets between the Securities and Exchange Commission and the Commodity Futures Trading Commission. Supporters argue that clearer jurisdiction could reduce uncertainty hanging over Bitcoin and the wider crypto market.
But Coinbase CEO Brian Armstrong has suggested that the outcome may matter less than it appears. Even if Congress blocks the bill, Armstrong said he expects the SEC and CFTC to move ahead with their own rulemaking.
“Frankly, if it doesn’t pass, it’s also going to be a good outcome because the SEC and the CFTC have said that they’re ready to publish rulemaking, and we’re going to get regulatory clarity one way or another on the 15th or the day or two after,” Armstrong said.
That possibility gives Bitcoin a second path toward regulatory clarity, even as the Senate vote remains the immediate political test.
Oil is adding another layer of pressure. West Texas Intermediate crude futures climbed back toward $103 a barrel during Tuesday’s Asian session after briefly falling to about $100.
Higher crude prices can reinforce inflation concerns, potentially giving the Federal Reserve another reason to maintain tighter monetary conditions.
The Fed is expected to raise its benchmark interest rate by 25 basis points on Wednesday, taking the federal funds target range to 3.75%–4% from 3.50%–3.75%. The 10-year Treasury yield was already near 5% on Monday.
For Bitcoin, that combination matters. Elevated bond yields and a potentially hawkish Fed message can make riskier assets less attractive, leaving the cryptocurrency vulnerable just as traders are parsing every headline from Washington.