Bitcoin is reversing Monday’s rally as last-minute Senate wrangling over crypto market-structure legislation coincides with a renewed rise in oil prices during Tuesday’s Asian trading session.
The leading cryptocurrency by market value has pulled back to trade near $77,800, having hit a highs above $79,000 on Monday, according to data source CoinDesk. Other majors, such as XRP (XRP), ether , and solana (SOL) are seeing similar trends. Payments-focused XRP has pulled back to $1.42 from the high of $1.49, but still appeared on track to form a bullish golden crossover.
The retreat followed reports that Democrats were still seeking additional changes to the Digital Asset Market Clarity Act, despite President Trump’s reported agreement to revised ethics language in a Senate draft that Republicans circulated over the weekend and described as a final compromise.
“The Democrats want more,” Sen. Cynthia Lummis, the Wyoming Republican who’s been the bill’s most visible champion said. “They always want more. If we waited another month, they would want more.”“There’s no end to it,” Lummis said.
The Senate is scheduled to vote Tuesday on whether to advance the Clarity Act legislation. The procedural vote requires 60 votes, meaning Republican support alone would not be enough. The bill would divide oversight of digital assets between the Securities and Exchange Commission and the Commodity Futures Trading Commission. Supporters say passage would reduce regulatory uncertainty for bitcoin and the broader crypto market.
Some observers believe the crypto industry will get a clear regulatory framework even if the Clarity Act is rejected. “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,” Coinbase’s CEO Brian Armstrong said.
A separate pressure point for bitcoin came from energy markets. West Texas Intermediate crude futures rose to about $103 per barrel after falling as low as $100 overnight. Higher oil prices can feed into inflation and strengthen expectations that the Federal Reserve will keep policy tight.
The Fed is expected to raise interest rates by 25 basis points on Wednesday, lifting the federal funds target range to 3.75%–4% from 3.50%–3.75%. The 10-year Treasury yield was near 5% on Monday. A rate increase, particularly if accompanied by a hawkish signal from policymakers, would come against a backdrop of already elevated yields, a combination that has historically been a headwind for bitcoin.