BTC And ETH Brace For High Volatility Ahead Of Crucial US Events

Bitcoin and Ethereum have traded sideways for nearly a month, but traders should prepare for sudden price swings over the coming days. Major regulatory and macroeconomic decisions are hitting Washington this week, which could spark heavy movement across the entire digital asset market.

On Tuesday, the United States Senate is scheduled to hold a procedural vote on the revised CLARITY Act. Senator Cynthia Lummis recently urged Democratic lawmakers to back the bill after a deal was reached incorporating key demands. Polymarket data shows the odds of the bill becoming law in 2026 have jumped to 32 percent, up significantly from just 14 percent at the start of the month.

Attention will shift on Wednesday to the Federal Reserve and its latest interest rate announcement. Analysts currently expect a 25 basis point rate hike, pushing the target rate to 4 percent. Market participants should keep a close eye on these developments, as the total crypto market cap recently climbed to $2.64 trillion and could react strongly to any surprises.