Bitcoin Slides as Kospi Plunges and Senate Shelves Crypto Bill

Bitcoin often trades in step with equities when market stress is driven by macroeconomic conditions and interest rates, though that relationship can weaken during company-specific selloffs. Bitfinex analysts said concerns centered on earnings and capital expenditure could overstate the correlation. Investors are also watching Washington, where delays to the CLARITY Act have added uncertainty over the timetable for U.S. digital-asset regulation.

Bitcoin fell 2.7% to about $63,200 from nearly $65,000 after the U.S. close on July 28, while South Korea’s Kospi tumbled nearly 11% and extended its decline from a mid-June peak to 25%. The U.S. Senate shelved the CLARITY Act to prioritize a Russia sanctions bill, making a vote unlikely before the following week and leaving little time before the Aug. 8 recess. The Federal Reserve’s July 29 rate decision, followed by core PCE and GDP data on July 30, was expected to intensify volatility.