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Guavy AI Editorial TeamSentiment: -3.2Clout: 40

Crypto Market Plunges as Clarity Act Odds Drop and Global Tariffs Bite

The cryptocurrency market is facing unprecedented challenges due to a combination of regulatory uncertainty and macroeconomic pressures. The odds of the Clarity Act Crypto 2026 passing on Polymarket have declined significantly, from 82% to 53%, indicating a loss of confidence in regulatory certainty.

This decline has been exacerbated by the recent imposition of global tariffs, which have intensified inflationary fears and reinforced the narrative of prolonged high-interest rates. As a result, liquidity in the market for risky assets such as cryptocurrencies has further decreased.

The bearish momentum is becoming increasingly strong, leading many investors and traders to hold back or exit the market altogether. Analysts believe that until tariff and regulatory uncertainties are resolved, it will be challenging for digital asset prices to recover.