Bitcoin Faces Key Week As CLARITY Act Vote And Fed Decision Loom

Bitcoin traders are gearing up for a volatile week as two major events take center stage, a Senate vote on the CLARITY Act and the Federal Reserve’s upcoming rate decision. The coin is trading below important weekly support levels heading into these catalysts.

Fed Rate Hike Expected Despite Political Pressure

The Federal Reserve is widely expected to raise interest rates by a quarter point on Wednesday, pushing the benchmark rate to a range of 3.75-4%. This comes despite pressure from the White House to cut rates instead. Market pricing now shows a much lower chance of rates staying unchanged compared to just a week ago, as inflation data and rising oil prices shift expectations. Oil has climbed back above $100 a barrel amid supply concerns tied to tensions in the Middle East, adding fuel to inflation worries.

Consumer Inflation Concerns Rise

Recent survey data shows Americans now expect prices to rise faster over the next year compared to earlier in 2026, with gas prices and tariffs cited as key drivers.

CLARITY Act Faces Critical Senate Test

A day before the Fed announcement, the Senate will hold a procedural vote on the CLARITY Act, a bill aimed at giving the crypto industry clearer legal rules in the US. The updated proposal needs 60 votes to move forward. Supporters argue the bill includes strict ethics requirements for lawmakers and their families, while opponents warn that rejecting it could push crypto innovation overseas.

Traders Pull Back Positions Ahead Of Big Events

Data on open interest shows traders have been reducing exposure heading into this week’s events, with positioning now sitting well below levels seen before Bitcoin’s mid-August rally. Despite this pullback, funding rates across exchanges have shown a steady bullish trend since late spring, following a period of heavy negative sentiment earlier in the year.

Bitcoin Struggles To Hold Weekly Support

Bitcoin closed the week below a key support zone, ending around $76,800 and slipping under its 50-week moving average. Analysts say holding above the next major support level will be crucial to avoid repeating a failed breakout pattern seen earlier this year. Still, a bullish pattern on the relative strength index remains intact, offering some hope for buyers.