Investing.com– fell more than 3% on Tuesday, slipping toward the $63,000 level and hitting its lowest in ten days, as a selloff in AI-linked technology shares spilled over into cryptocurrencies while investors braced for a pivotal U.S. Federal Reserve policy decision later this week.
The world’s largest cryptocurrency last traded 3.1% lower at $63,494.8 by 01:42 ET (05:42 GMT), hitting its lowest since July 17.
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Crypto weighed down by AI rout, Fed uncertainty
The cryptocurrency selloff coincided with a sharp decline in Asian technology stocks, led by South Korea’s , which slumped more than 10%, as investors dumped AI-related chipmakers.
and shares fell sharply amid concerns over the sustainability of massive AI infrastructure spending, while intensifying competition from Chinese memory-chip makers further weighed on sentiment.
Market participants remained cautious ahead of the conclusion of the Federal Reserve’s two-day meeting on Wednesday.
Traders are pricing in roughly a 38% chance of a surprise quarter-point rate hike this week, while expectations for a September increase have climbed above 80%, according to CME FedWatch. Higher interest rates tend to reduce the appeal of non-yielding assets such as cryptocurrencies.
Bitcoin has struggled to sustain its recovery after rebounding from earlier lows this month, with recent gains undermined by continued outflows from U.S.-listed spot Bitcoin exchange-traded funds.
The cryptocurrency market also assessed improving geopolitical sentiment after the U.S. and Iran shifted toward diplomatic talks, with both sides holding off attacks since Sunday.
Attention is also turning to a busy week for technology earnings, with results from major AI-focused companies expected to test whether heavy spending on artificial intelligence infrastructure can continue supporting broader risk appetite.
U.S. Senate shelves crypto Clarity Act for now
The U.S. Senate has put consideration of the Digital Asset Market Clarity Act on hold for now as lawmakers turn their attention to a Russia sanctions package and processing federal nominations, narrowing the window for advancing one of the cryptocurrency industry’s most closely watched regulatory bills before the August recess.
Senate Majority Leader John Thune is expected to prioritize nominees before taking up legislation targeting Russia, with the sanctions bill entering procedural steps that could occupy the chamber for several days.
As a result, the crypto market structure bill is unlikely to reach the Senate floor until next week at the earliest.
The CLARITY Act, which cleared the Senate Banking Committee in May, would establish a regulatory framework for digital assets by defining oversight responsibilities between U.S. regulators.
Crypto price today: altcoins slip, Ether bucks trend with 5% jump
Most altcoins fell on Thursday, extending losses amid a cautious mood.
In contrast to the trend, world no.2 crypto climbed 5% to $1,888.03.
World no. 3 crypto fell 4.6% to $1.0593.
eased 4.2%, while declined 6%.
Among meme tokens, slipped 4%.