Bitcoin has retreated from above $79,000 as traders monitor a closely watched Senate vote on the CLARITY Act and a fresh rise in crude oil prices adds to macroeconomic concerns.
The cryptocurrency market leader was reversing Monday’s gains during Tuesday’s Asian session, with negotiations over the proposed crypto market-structure bill continuing at the last minute. Meanwhile, oil prices resumed their climb, adding another source of pressure to risk-sensitive markets.
Bitcoin was trading near $77,800 after reaching levels above $79,000 a day earlier, according to CoinDesk data. XRP, ether and solana also moved lower. XRP slipped to $1.42 after reaching $1.49, although the token remained positioned for a potential bullish golden crossover.
Democrats Seek More Changes
Bitcoin’s decline came as Democrats reportedly continued pressing for additional amendments to the Digital Asset Market Clarity Act. Their demands followed reports that President Trump had accepted revised ethics provisions included in a Republican Senate draft released over the weekend.
Republicans had presented the updated language as a final compromise, but the negotiations remained unresolved.
Sen. Cynthia Lummis, a Wyoming Republican and prominent supporter of the bill, expressed frustration with the continued requests.
“The Democrats want more,” Lummis said. “They always want more. If we waited another month, they would want more.” She also said, “There’s no end to it.”
The Senate is expected to vote Tuesday on a procedural motion to advance the legislation. The measure requires 60 votes, meaning Republicans will need at least some Democratic backing.
If passed, the CLARITY Act would establish a regulatory framework that divides digital-asset oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission. Advocates believe the legislation would reduce uncertainty for bitcoin and the wider cryptocurrency sector.
Regulatory Clarity Could Come Either Way
Not everyone believes failure of the bill would necessarily be negative for the industry.
Coinbase CEO Brian Armstrong argued that the SEC and CFTC could still provide greater regulatory certainty through their own rulemaking efforts.
“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,” Armstrong said. He added that the crypto industry could obtain regulatory clarity “one way or another” around the vote or within the following day or two.
Rising Crude Prices Pressure Risk Assets
Oil markets provided another potential obstacle for bitcoin. West Texas Intermediate crude futures advanced to roughly $103 per barrel after touching about $100 overnight.
More expensive oil can add to inflation and increase the likelihood that the Federal Reserve keeps interest rates elevated for longer.
Markets expect the Fed to raise rates by 25 basis points on Wednesday, moving the federal funds target range from 3.50%–3.75% to 3.75%–4%.
The 10-year Treasury yield was close to 5% on Monday. A rate increase accompanied by a hawkish Fed message would come as bond yields are already elevated, a backdrop that has historically weighed on bitcoin and other risk assets.
