Bitcoin traders are preparing for potential market volatility this week as two major events approach: the Senate procedural vote on the CLARITY Act and the Federal Reserve's upcoming interest rate decision. Analysts note that open interest in Bitcoin fell by 13.5% in the week ending September 11, dropping from 321,497 BTC to 278,151 BTC.
The Federal Reserve is expected to announce its interest rate decision on Wednesday. Market data from the CME Group’s FedWatch Tool indicates a 13.3% probability that rates will remain unchanged, with a widespread expectation of a 25 basis point hike to a range of 3.75-4%. These expectations are influenced by rising oil prices and persistent inflation concerns.
On Tuesday, the US Senate will hold a procedural vote on the CLARITY Act, which aims to establish a legal framework for digital assets. The proposal, presented by Senator Cynthia Lummis, requires 60 votes to advance. Current data from Polymarket suggests a 34% probability that the bill will be signed into law within 2026.
Bitcoin closed the week below key support levels, ending near $76,800. Analyst Rekt Capital highlighted that the asset failed to maintain the $78,300 level required for a bullish outlook and closed below its 50-week exponential moving average of $77,380. The next potential support level is identified at the 21-week EMA of $72,270.
