Crypto slides as markets wait on Clarity Act vote

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Market snapshot:

• WTI crude oil up +1.45% to $102.86
• Gold down -0.40% to $4281
• EUR/USD down -0.11% to 1.1534
• USD/JPY up +0.33% to 154.82
• S&P 500 down -0.21% to 7609.00
• Bitcoin up -1.41% to $77,063

Trading has been fairly subdued, with a thin calendar of economic releases and headlines. On the data front, the UK employment figures stood out. Payrolls declined once more and wage growth softened, adding to signs that the labour market is gradually cooling. That points to a more dovish tilt, though it is not enough to shift the Bank of England's inflation-first approach.

The German ZEW survey was also released, showing investor morale improved again in September, albeit less than anticipated. That could hint at fading momentum as the ECB keeps hiking and oil prices surge.

Cryptocurrencies saw the most notable moves as the Senate prepares for a cloture vote on the Clarity Act at 2:15pm ET. If the vote fails, the window for passing crypto market structure legislation this year could close, especially with November midterms looming. That would likely weigh on digital assets in the near term. Yet even a win might not spark a rally. With the FOMC decision due tomorrow, a 'sell the fact' reaction is possible as traders pivot from the Clarity Act back to monetary policy and the broader macro headwinds.

Elsewhere, price action has stayed within ranges ahead of the FOMC, as any hawkish surprise could trigger risk-off moves. Oil remains the key driver across markets in the short run, with the Iran conflict and Fed rate hikes still the dominant narratives.