What happened: Bitcoin (BTC-USD) dropped more than 2% on Tuesday to trade just above $63,000 per token, its lowest level in 10 days.

What’s behind the move: A rout in AI-related stocks, ambiguity over the Fed’s next policy decision, and possible delays to crypto legislation in Congress weighed on bitcoin sentiment.

In recent days, optimism around crypto’s landmark legislative push has faded as the timeline to pass the industry’s major bill runs up against a key deadline: Congress’s August recess, which begins after next week.

Known as the Clarity Act, the bill would establish a federal legal framework for much of the crypto industry, including market oversight, guidelines for institutional…