Bitcoin Defies Odds: Rebounds Above $80K Despite Multiple Setbacks

Despite facing three significant setbacks last week, the US Senate's failed vote on the CLARITY Act, the Fed's first rate increase in over three years, and the Bank of Japan's decision to raise rates to a 31-year high, Bitcoin (BTC) has rebounded above $80K.

The CLARITY Act's failure set off a chain reaction that saw BTC plummet to a multi-week low of $75,000 on Tuesday. However, instead of crumbling further under the weight of these negative developments, BTC demonstrated resilience and bounced back above $78,000.

Crypto analyst Crypto Dan notes that the on-chain picture is increasingly resembling previous transitions out of bear markets. Bitwise CIO Matt Hougan also observed that BTC had already gained substantially while prediction markets were cutting the odds of the CLARITY Act advancing, suggesting the recent recovery was not entirely dependent on the bill.

While some may argue that Bitcoin should be hurt by now, its resilience is a testament to its growing strength. However, it's essential to note that BTC still has a long way to go before we can determine that the bull market has begun. The first major test lies in defending $80,000 and taking down $81,700.