Bitcoin drops as South Korean stocks tumble, Senate shelves crypto Clarity Act

MarketsBitcoin drops as South Korean stocks tumble, Senate shelves crypto Clarity ActBTC shed 2% as South Korea's Kospi plunged 11% and the U.S. Senate shelved the Clarity Act, leaving the market facing a pivotal Fed decision on Wednesday.By Oliver Knight, Omkar Godbole|Edited by Sheldon Reback Jul 28, 2026, 11:09 a.m. 3 min readMake preferred on ShareShare this articleCopy linkX iconX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShowBitcoin fell around 2% during the U.S. overnight session as South Korea's Kospi stock index plunged 11%, one of its worst single-day declines in yearsThe slide rattled global risk assets, hitting AI and layer-1 tokens hardest, with FET, NEAR and HYPE losing as much as 10% over 24 hours.The U.S. Senate shelved the Crypto Clarity Act to prioritize a Russia sanctions bill and federal nominations, leaving just two weeks of floor time before the Aug. 8 recess begins and a key unresolved dispute over restrictions on government officials' crypto holdings.Bitcoin BTC$63,399.37 has lost 0.53% since midnight UTC, having shed around 2% during the U.S. session overnight.Two catalysts are weighing on sentiment. First, chipmaking stocks tumbled in South Korea, dragging the benchmark Kospi stock index down 11%. The drop, one of its worst single-day declines in years, sent shockwaves across global risk assets. And on the regulatory front, the U.S. Senate shelved the Crypto Clarity Act for now, opting to prioritize a Russia sanctions bill and federal nominations with just two weeks remaining before the summer recess begins on Aug. 8. The bill's fate this year is now genuinely uncertain.Ether (ETH) fell 0.56% to $1,880 having failed to rise through the psychological level of $2,000 on Monday. Both the Fed's interest-rate decision on Wednesday and the Senate's remaining floor time loom large over the market this week.Traditional markets are broadly lower, with Nasdaq 100 index futures down 0.70%, gold shedding 0.93% and silver off 1.50%.Deriv…

Bitcoin drops as South Korean stocks tumble, Senate shelves crypto Clarity Act

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