Bitcoin Hashrate Rebound Fails to Offset Post-CLARITY Price Drop

Bitcoin's price was met with a harsh reality check this week after expectations for a favorable CLARITY Act outcome fueled extreme FOMO in the crypto community, according to Santiment Insights.

The sentiment shifted quickly on September 15 when the Senate failed to advance the CLARITY Act, and Bitcoin fell as regulatory optimism unwound. The price drop was compounded by another risk-off catalyst: the Fed's decision to raise rates by 25 basis points to 3.75%-4.00% on September 16.

After these events, crypto sentiment cooled back near neutral, with Santiment describing enthusiasm being flushed out and fear rebuilding.

In a potentially constructive development for Bitcoin, CryptoQuant's analysis shows that the hashrate has ended its downward trend and is gradually increasing again. Historically, higher miner activity can be associated with bullish trends in Bitcoin price.