Bitcoin Defies Expectations, Bounces Back Above $80K Amid Rate Hikes

Last week, several events unfolded that could have sent Bitcoin prices plummeting. The US Consumer Price Index (CPI) data was already out, and investors were waiting for the Federal Reserve's key FOMC meeting to see if interest rates would increase. Meanwhile, the CLARITY Act vote in the US Senate failed to advance on Tuesday, followed by a rate hike from the Fed, and another increase from the Bank of Japan.

Despite these setbacks, Bitcoin held strong, with a dip to $75,000 after the CLARITY Act's failure. This was not an insignificant drop, but it could have been worse. Over 23,000 BTC were sent to exchanges at a loss following the vote, which some described as a major capitulation event.

The Fed's rate increase was its first in over three years, and while it may have strengthened the US dollar, it didn't seem to affect Bitcoin prices significantly. The Bank of Japan's decision to lift rates by 25 basis points to 1.25% also failed to move the needle for BTC.

According to some analysts, this resilience in the face of bad news could be a sign that the cryptocurrency is transitioning out of a bear market. Others pointed out that markets had already priced in these events beforehand, and therefore they weren't as impactful as expected.