Bitcoin (BTC) slipped to its lowest levels of the month at Tuesday's Wall Street open, as global bond yields surged and crypto markets braced for a key United States Senate vote on the CLARITY Act.

Key points:

• Bitcoin dropped to $75,560, its lowest level so far in September, ahead of the US Senate's procedural vote on the CLARITY Act.
• Bond yields across major economies set new macro highs, with oil prices near $100 per barrel remaining a point of contention.
• Analysts expect central banks around the world to raise interest rates going forward — traditionally a headwind for crypto markets.

CLARITY Act vote keeps crypto markets on edge

Data from TradingView showed BTC/USD dipping below $76,000, erasing a trip to $79,600 from the day prior.

Traders remained on edge ahead of the procedural vote on the CLARITY Act, scheduled for 2:15 pm Eastern time. The legislation will advance to a Senate-floor debate if it gains the necessary 60 votes.

As Cointelegraph reported earlier, consensus sees barely any chance of success despite optimism from some sources, with Polymarket users giving the CLARITY Act mere 14% odds of becoming law in 2026 as of Tuesday — a real-time read on how the prediction market itself prices the bill's chances.

Trading firm QCP Capital stressed that even if the act passes Tuesday's procedural vote, the impact would be limited and would represent just one of several hurdles for proponents.

"The bill's passage would clarify the respective regulatory roles of the SEC and CFTC, potentially strengthening the medium-term case for institutional adoption by reducing regulatory uncertainty," the firm wrote in analysis on Monday.

"However, procedural progress does not guarantee final passage, and the timing of remaining legislative steps will determine the immediate market impact of any vote this week."

Bond yields surge worldwide on oil-fueled inflation risk

US stocks, meanwhile, turned red on the day as bond yields around the world returned to their highest levels in decades. The US 10-year yield passed 5% for the first time since November 2023, going on to reach 5.041% — a level not seen since June 2007. Because the 10-year Treasury yield underpins borrowing costs across the US economy, its return to levels not seen in nearly two decades is closely watched as a gauge of financial conditions for risk assets.

Related: Bitcoin short-term holders hit 30-day profit streak as bull-market odds improve: CryptoQuant

Reuters reported that the average 10-year yield for the world's seven largest economies had reached 4.285%, its highest since mid-2008, around the height of the Global Financial Crisis.

UK and Japanese bonds also made headlines: the UK 30-year yield reached 5.95% for the first time since March 1998, while the Japanese 10-year hit 3.04% — the highest in 30 years.

Responding to the surge, trading resource The Kobeissi Letter predicted that central banks would tighten policy and enact interest-rate hikes. The US Federal Reserve is widely expected to raise its benchmark rate by 0.25% on Wednesday, while the Bank of Japan is expected to do the same at its Friday meeting — decisions that land in the same three-day window as the CLARITY Act vote, concentrating legislative and monetary catalysts into a compressed stretch of the trading week.

"It's clear what's coming next. Monetary policy is shifting, rate hikes are returning, and the next battle against inflation has started. Just as we saw Treasury intervention in the US, the UK will likely soon intervene. Yields are simply unsustainable at current levels," Kobeissi wrote in a post on X.

Bond yields continued to rise on the threat of a fresh global inflation wave driven by high oil prices, with several key transit routes at risk from a widening Middle East conflict. WTI crude oil neared $105 per barrel on Tuesday, headed for its highest levels since early May.