Bitcoin Defies Expectations as Rate Hikes and Clarity Act Setback Fail to Dampen Price

Bitcoin has shown remarkable resilience in the face of recent challenges, including rate hikes and a setback for the Clarity Act. Despite expectations that it would surrender some of its August gains, Bitcoin is down just 1.5% this month, putting it on course for its first positive quarterly close since the third quarter of 2022.

According to Blockware Intelligence's Mitchell Askew, 'What stands out to me is that Bitcoin has hardly budged at all in response to two objectively bad pieces of news.' He notes that when bad news stops affecting the price, it's a sign of seller exhaustion, which is an incredibly positive sign for the medium to long term.

The Clarity Act failed to secure the 60 votes needed to advance in the Senate, and Bitcoin briefly fell below $74,887 on Tuesday. However, it stabilized quickly, suggesting that traders had already priced in much of the risk of failure.