Why Is Bitcoin Crashing? Fed Decision and Crypto Bill Delay Explained

What's Happening: Bitcoin's Slide Alongside the Equity Selloff

Bitcoin fell in early trading on 28 July 2026 as a broader selloff in Asian equities combined with growing caution ahead of the Federal Reserve's rate decision.

Bitcoin declined as much as 2.3% to around $63,414, its lowest level in eleven days, according to Bloomberg (28 July 2026). CoinDesk separately reported bitcoin falling about 2.7% to roughly $63,200 over the same session, alongside a broader slide across major cryptocurrencies. Ether fell around 3.6% to 4.4% depending on the reading, per Bloomberg and CoinDesk.

The move came alongside a sharp selloff in South Korea's Kospi index and other Asian markets, as investors reassessed the sustainability of artificial intelligence (AI) infrastructure spending, according to CoinDesk (28 July 2026).

Why Bitcoin Moves With Stocks in High Rate Stress Periods

Some analysts say bitcoin increasingly behaves as a risk asset, meaning its price can move in the same direction as equities when uncertainty about interest rates rises. Others remain of the view that it remains an uncorrelated asset.

But according to CoinDesk (28 July 2026), analysts say bitcoin tends to move together with stocks when macro and interest rate stress is high, with volatility across asset classes expected around the Federal Reserve's decision and this week's US economic data.

News.Bitcoin.com (26 July 2026) reported that higher real yields and a firmer US dollar have worked against bitcoin and other risk assets, competing for capital that might otherwise flow into crypto markets. This is a description of a general market mechanism, not a comparison of bitcoin's own performance against any other asset class.

The Fed's July 28 to 29 Meeting: What's at Stake

Bitcoin's next move may hinge partly on the Federal Reserve's policy decision, due on 29 July 2026.

The Federal Reserve's benchmark rate has stood in a target range of 3.50% to 3.75% since its June meeting, according to the Federal Reserve's own published minutes. CNBC reported on 27 July 2026 that markets expected the Fed to hold rates steady, describing the decision as a close call given persistent inflation pressures.

The CLARITY Act Delay: What It Means for US Crypto Regulation

The US Senate has delayed a vote on the CLARITY Act, the crypto market structure bill, extending uncertainty over how digital assets will be regulated in the US.

The CLARITY Act, formally the Digital Asset Market Clarity Act, would create a statutory framework dividing oversight of crypto markets between the Securities and Exchange Commission and the Commodity Futures Trading Commission, according to CoinDesk (27 July 2026). It has already passed the House of Representatives.

CoinDesk reported on 27 July 2026 that Senate Majority Leader John Thune prioritised a Russia sanctions package and federal nominations ahead of the CLARITY Act, making it increasingly unlikely the bill receives a vote before the Senate's scheduled 8 August recess. CNN reported on 22 July 2026 that a memorial for the late Senator Lindsey Graham further reduced available floor time that week.

Two developments shaping bitcoin's week

Is Bitcoin worth Watching Right Now?

There is no single answer, and views among analysts are currently mixed.

Some point to continued institutional interest through spot bitcoin ETFs as a supportive factor, even though ETF flows turned negative recently, with roughly $465 million in outflows over two sessions reported by Bloomberg and CoinDesk (27 to 28 July 2026). Others flag ongoing volatility and regulatory uncertainty. A Nansen analyst cited by CoinDesk (27 July 2026) said bitcoin could fall toward the $52,000 level if demand does not improve, a third party view and not a guarantee of future performance.

Cryptoassets are highly volatile and largely unregulated, with no consumer protection, and tax on profits may apply. Past performance is not a reliable indicator of future results.

How UK Investors Can Get Exposure to Bitcoin

UK investors typically access bitcoin through a dedicated crypto trading account, rather than a standard Stocks and Shares ISA.

Whichever route is used, cryptoassets carry risks that differ from traditional investments, including price volatility, limited regulatory protection, and the possibility of losing the full amount invested. You are responsible for your own investment decisions.

IG Academy: Understanding Crypto Market Volatility

Educational resources covering how bitcoin and other cryptoassets react to macro events such as central bank decisions.

FAQ

Past performance is not a reliable indicator of future results.