Crypto bill stalls, Bitcoin charts break down, and the Fed just turned hawkish — short Bitcoin on the perfect storm
Bitcoin is flashing technical warning signs after failing to break through a ceiling around $65,000, a bearish pattern that often precedes a sharp drop. At the same time, the regulatory tailwind that lifted crypto earlier this year is unraveling in the Senate, and the Federal Reserve's latest meeting revealed internal pressure to actually raise interest rates — a toxic mix for risky assets.
Idea
Bitcoin forming a double-top below $65,000 is a textbook sign that buyers are exhausted, and chart watchers often interpret this as a precursor to a deeper selloff toward $60,000 or below. Compounding the technical weakness, the Clarity Act — a crypto regulation bill that helped fuel Bitcoin's spring rally — is now stalling in the Senate amid conflicts of interest and bank lobbying, removing a key fundamental support pillar. Meanwhile, the Fed's hawkish hold and internal dissents pushing for rate hikes strengthen the dollar and drain liquidity from speculative assets. When tightening monetary policy meets fading regulatory hopes on top of a bearish chart pattern, the path of least resistance is downward. ## Story development — 2026-08-02 10:44 UTC **Fed holds rates, crypto wallets get hacked, and August seasonal weakness looms — short Bitcoin** Bitcoin is facing a rare triple threat: the Federal Reserve is refusing to cut interest rates, a hardware wallet hack just drained $70 million from holders, and seasonal weakness is setting in. With no clear positive catalyst on the horizon, the path of least resistance appears to be downward.
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News sources
- A key cryptocurrency bill could flop because of Trump's crypto ventures and banks' objections — MarketWatch
- Bitcoin Price to Sink? Fed Holds Rates at 3.50%-3.75%, Revives 'Higher for Longer' Warning — Yahoo Finance
- Bitcoin Price Forecast: BTC Risks Strong Drop Below $60K After Double Top — Yahoo Finance
- Fed Dissents Show Migration Toward Hike, JPMorgan's Michele Says — Bloomberg
- Bitcoin May Finally Crash Below $60K As August Curse Kicks In — Yahoo Finance
- Stocks Plunge on a Rout in Chipmakers and a Hawkish Fed Hold — Yahoo Finance
- Bitcoin losses linked to Coldcard vulnerability grows to $70 million, Galaxy Research says — The Block