Bitcoin Pulls Back as Polymarket Odds for Clarity Act Slump

Bitcoin‘s price retreated early Tuesday, giving back gains from a rally the previous day as prediction market odds for the passage of a major U.S. crypto bill fell sharply.

BTC traded around $76,862, a decline of 1.7% since midnight UTC. This move erased a rally on Monday that had pushed the price as high as $79,427. The downturn coincided with a steep drop in the probability for the Clarity Act, a key piece of digital asset legislation, on the prediction market Polymarket.

Odds that the bill would be signed into law this year halved overnight, falling to around 34%. The Senate is scheduled to vote later Tuesday on whether to invoke cloture on the legislation. The price action suggests traders are closely watching the bill’s political progress.

Other major cryptocurrencies followed bitcoin lower. Ether (ETH) fell 1.6% to $2,474, while Solana (SOL) declined 2% to $100.43. The broad-based retreat reversed a divergence seen Monday, when crypto assets fell while equity futures rose.