Crypto's Double Policy Shock: A Hike, a Failed Clarity Vote

Crypto took a double hit to its two biggest narratives on Wednesday, and the selloff tells you more about how this market is wired than the day's price action alone. The Federal Reserve raised rates by 25 basis points to a 3.75%-4.00% target, its first hike since July 2023, and hours later the US Senate failed to advance the Clarity Act, the industry's most-watched regulatory catalyst. Bitcoin fell as much as 5.3% to an intraday low of $74,910; Ether dropped more than 8% at the low. Both were the steepest single-session moves since June.

Key Takeaways Bitcoin fell as much as 5.3% to $74,910 intraday and Ether dropped over 8% at the low, the largest moves since June, as a Fed rate hike met a f…