Bitcoin (BTC-USD) hit the brakes Tuesday, dropping below $117,000 after crypto-focused bills ran into political resistance in the U.S. House of Representatives.
The price tumbled 2.8% to $116,516 retreating from a daily high of $120,481 as 13 Republicans crossed the aisle to block a procedural vote. That setback deflated expectations that Congress might finally deliver regulatory clarity for the industry.
It’s a sharp turn from recent weeks, where excitement around bitcoin ETFs and hopes for a legislative breakthrough had driven the token to all-time highs.
Crypto stocks didn’t escape the fallout. Riot Platforms (RIOT, Financials) fell 3.3%, Marathon Digital (MARA, Financials) slid 2.3%, and Coinbase (COIN, Financials) dropped 1.5% all showing weakness even after the closing bell.
The vote wasn’t on final legislation, but it still signaled a rocky path ahead. And with crypto’s fortunes now tied closely to politics, traders are watching D.C. as closely as they are their charts.
This article first appeared on GuruFocus.
