The crypto market is having a rough day, and Bitcoin slipping below $77,000 is a big part of it. BTC traded around $76,776 over the past 24 hours, down 0.70%. The broader crypto market did even worse, falling 1.06%.
A combination of rising expectations for a Federal Reserve rate hike, ETF outflows, and uncertainty surrounding the upcoming CLARITY Act vote has traders moving cautiously. With several major events approaching, many investors are choosing to reduce risk instead of adding exposure.
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Bitcoin Falls Below $77K as Crypto Market Turns Red
Bitcoin dropped below $77,000 after struggling to hold momentum near recent highs. What’s interesting is that Bitcoin has been moving closely with traditional markets lately. Over the past week, it showed a 66% correlation with the S&P 500. So when stocks move, crypto tends to follow.
We had a look at the Bitcoin chart, and the market appears stuck in a wait-and-see mode. Bitcoin is trading around $76,709, with very little volume coming into the market. Momentum indicators aren’t helping much either. The RSI stands at 35.99 and the Ultimate Oscillator is at 34.94, both showing oversold conditions.
That doesn’t automatically mean a rebound is coming. It simply shows that sellers have controlled the short-term trend and traders are waiting for a stronger catalyst before making their next move.
Fed Rate Fears and Rising Treasury Yields Pressure Crypto
The biggest issue facing the crypto market right now is the Federal Reserve. August inflation came in hotter than expected. Core CPI rose 0.3% month-over-month, while forecasts called for 0.2%.
That one data point shifted expectations fast. Crypto Rover shared that markets now put the odds of a September 16 rate hike somewhere between 78% and 87%. So traders are bracing for the Fed to move.
Higher interest rates typically drain liquidity from financial markets. They also make safer assets such as Treasury bonds more attractive. That combination tends to put pressure on risk assets, and the Bitcoin price has been feeling that pressure throughout the week.
Read Also: Gold and Silver Price Prediction for This Week: Fed Decision Could Change Everything
Crypto Liquidations Add Fuel to the Selloff
The decline isn’t only about the Fed. Spot Bitcoin ETFs in the United States have recorded four straight days of outflows. The latest data shows a $13.29 million redemption on September 11, ending what had been a stronger period for institutional demand.
At the same time, long-term holders have sold approximately 539,000 BTC in the $77,000 to $80,000 range this year. That creates a large supply zone directly above the market. Every time the Bitcoin price pushes higher, it runs into sellers looking to lock in profits. With fewer ETF buyers stepping in and additional supply entering the market, downward pressure has become harder to absorb.
CLARITY Act Uncertainty Adds Another Risk Ahead of Monday
Traders are also paying close attention to the CLARITY Act. Bitcoin News shared comments from Patrick Witt, Executive Director of the President’s Council of Advisors for Digital Assets, who hinted at positive developments ahead of the Senate vote, posting: “Bad day to be a Clarity Act doomer.”
CLARITY ACT UPDATE: Patrick Witt, Executive Director of the President’s Council of Advisors for Digital Assets, appears to signal positive developments ahead of the Senate’s upcoming CLARITY Act vote.
— Bitcoin News (@BitcoinNewsCom) September 12, 2026
“Bad day to be a Clarity Act doomer.”
However, Polymarket odds of the law… pic.twitter.com/Vo7qTn6wMA
Despite that optimism, Polymarket still places the odds of the legislation passing in 2026 at only 20%. There is also growing political attention around the bill. Bitcoin Magazine reported that President Trump met with advisers on Friday to discuss ethics language tied to the legislation.
JUST IN: 🇺🇸 President Trump met with advisers on Friday regarding ethics language for the Clarity Act — Politico 👀 pic.twitter.com/9nyUUyv2UX
— Bitcoin Magazine (@BitcoinMagazine) September 13, 2026
For now, investors appear more interested in waiting for concrete developments than making aggressive bets ahead of the vote.
Can Bitcoin Recover, or Is $75K Coming Next?
Bitcoin is approaching an important decision point. Support sits between $76,300 and $76,500. If buyers manage to defend that zone, Bitcoin could stabilize and make another run at $78,000, followed by the key psychological level at $80,000. So it’s all about whether that support holds.
If support gives way, the next downside targets come into view quickly. The first area to watch is around $74,708, followed by $74,000. Beyond that, traders will be watching $72,000 and $70,000.
Right now, Bitcoin is getting pulled in a bunch of different directions. Rising rate-hike odds, weaker ETF demand, long-term holders taking profits, and uncertainty around the CLARITY Act are all weighing on sentiment. Until the market gets more clarity from the Fed and lawmakers, expect volatility to stick around. It’s just that kind of environment.
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