The crypto market is heading into a key moment as expectations for a Federal Reserve rate hike have jumped to 89%, up sharply from 58% just 24 hours earlier.
The move followed CPI data showing 0.3% inflation versus 0.2% expected, strengthening expectations for tighter monetary policy.
A Fed hike could create short-term pressure on risk assets, including $BTC and $ETH. However, with the move increasingly priced in, traders may be watching for how much of the reaction is already reflected in the market.
The other major headline is the CLARITY Act, which is being estimated at roughly 50% odds of passing.
If that happens, clearer U.S. crypto rules could have much bigger long-term implications for the industry.
For traders, the key question may not just be what the Fed does tomorrow, but whether regulatory clarity becomes the bigger catalyst.
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#Bitcoin #Ethereum #Fed #CryptoRegulation #CLARITYAct
