Bitcoin Hashrate Bounces Back Amidst Cooling Market Sentiment

The crypto market experienced a significant shift in sentiment this week due to a series of events. On September 14, the anticipation for a favorable CLARITY Act outcome led to extreme FOMO across the community, according to Santiment Insights.

However, on September 15, the Senate failed to advance the act, and Bitcoin's price fell as regulatory optimism unwound.

The market sentiment cooled down further when the Fed raised interest rates by 25 basis points to 3.75%-4.00% on September 16, signaling additional tightening may follow.

CryptoQuant's analysis suggests that despite the cooling sentiment, a potentially constructive development for Bitcoin is underway - its hashrate has ended its downward trend and is gradually increasing again.