Live updates: Bitcoin slumps as Clarity Act passage odds fade

Key Points:

• Treasury Secretary Scott Bessent testified that the Treasury is reviewing President Trump's proposal to send $5,000 to all U.S. adults if the GOP wins the midterms, estimating the $1.2 trillion payout could occur without increasing the deficit.
• The Senate is holding a procedural vote on the Clarity Act, a crypto market structure bill, requiring 60 votes to advance; current odds of passage this year are low, around 11-30%, amid unresolved ethics concerns and partisan negotiations.
• Cryptocurrency prices have declined ahead of the vote, with bitcoin down about 3.5% to $75,750 and major crypto-related stocks like Coinbase and Circle falling sharply due to uncertainty over the legislation.
• Global bond yields continue to rise, with the U.S. 10-year Treasury yield surpassing 5% for the first sustained time since 2007, as markets anticipate interest rate hikes from the Federal Reserve, Bank of England, and Bank of Japan this week.
• Market activity shows reduced demand and leverage in crypto derivatives ahead of key events, with investors cautious amid upcoming Senate and central bank decisions, while bitcoin options prices indicate slightly higher demand for downside protection.