Crypto Markets Plunge Sharply Ahead of CLARITY Act Rejection and Fed Decision

The rejection of the CLARITY Act could increase regulatory uncertainty in crypto markets, potentially creating short-term selling pressure. The weakening of risk appetite ahead of the Fed decision also supports the downward trend. Technical indicators show RSI at 45.8, in the neutral-weak zone, while MACD is negative and below the signal line. The price is slightly above SMA20 but below SMA50, indicating that downside risk continues in the short term. Although the 24-hour change is limited at -1.09%, news flow and Fed uncertainty could support a bearish course.

The rejection of the CLARITY Act is increasing uncertainty regarding US crypto regulations, thereby weakening risk appetite. ETH has fallen 2.5% in the last 24 hours and is trying to hold just above the SMA20 (2406) at the 2415 level; however, staying below the SMA50 (2463) confirms short-term weakness. The RSI is at 45.5, in neutral territory, and the MACD is negative but above the signal line, giving a limited recovery signal. The cautious stance ahead of the Fed decision and news flow could increase downward pressure. If the 2400 support is broken, the decline may accelerate; otherwise, a sideways-to-bearish trend is expected.

The rejection of the CLARITY Act is creating a negative news flow by increasing regulatory uncertainty for the crypto sector. COIN stock already exhibits a weak technical picture: although RSI at 37.8 approaches oversold territory, there is no reversal signal yet, and MACD is negative and below the signal line. The price is trading below the 20- and 50-day moving averages, indicating that short-term pressure may persist. Uncertainty ahead of the Fed decision and the sharp decline in crypto markets could reduce risk appetite and create additional selling pressure on COIN. However, given oversold conditions and the possibility that the news is already priced in, I also consider that the decline may be limited.

MSTR, being a stock highly correlated with Bitcoin, could be negatively affected by the sharp decline in crypto markets. The rejection of the CLARITY Act in the news and uncertainty ahead of the Fed decision are reducing risk appetite. Technical indicators are already weak: RSI around 40, MACD negative, and price below the 20 and 50-day moving averages. This outlook suggests that downward pressure may continue in the short term. However, the impact of the news may be limited; volatility could increase after the Fed decision.