Bitcoin Breaks $81,000 as Fed Hikes Interest Rates

Bitcoin's price shot up to over $81,000 on Friday, despite a week of setbacks for the crypto industry. The surge came after lawmakers blocked the Clarity Act, which aimed to divide oversight between regulators, and the Federal Reserve hiked interest rates due to high inflation in the US.

The Clarity Act's blockage and Fed's move initially caused Bitcoin's price to dip, but it rebounded on Friday with a nearly 6% 24-hour gain. The biggest coin peaked at $81,055 before trading around $80,982.

US spot Bitcoin ETFs experienced net outflows of roughly $427 million this week before seeing a $160 million inflow on Thursday, according to Farside Investors data. Regulators like the SEC are pushing ahead with pro-crypto regulation despite the Clarity Act's blockage.