Bitcoin dips as global stocks tumble and US regulation stalls

Bitcoin fell 2 percent today as investors reacted to a chaotic selloff in South Korean markets. The Kospi index dropped 11 percent, creating a wave of worry that spread quickly to digital asset traders. Market participants are showing signs of stress as these external economic forces collide with a busy week for domestic policy.

Adding to the uncertainty, the United States Senate officially shelved the Clarity Act. This legislation was intended to provide a clear roadmap for crypto regulation. By setting the bill aside, lawmakers have left the industry in a holding pattern regarding clear rules of the road for the coming months.

All eyes are now fixed on Wednesday. The Federal Reserve is expected to announce its latest interest rate decision, which will likely dictate the next major move for the market. Traders are watching for any hints about future economic policy that could either calm the current volatility or spark further selling pressure.