Bitcoin Holds Ground Above $86,000 Amid Rate Hike and Clarity Act Setback
Bitcoin's (BTC) price rebounded to above $86,000 despite two bearish catalysts: the Federal Reserve's interest rate hike and the Senate's failure to pass the CLARITY Act.
A report by BitGo Research found that BTC absorbed these developments and made a quick recovery to reclaim its position. The flagship cryptocurrency fell towards $75,000 after the rate hike but bounced back as ETF demand and short covering supported the rally.
The report's author, Greg Cipolaro, noted that BTC's reaction contrasted with traditional assets like gold and equities, which moved in line with expected market conditions. The muted reaction to the rate hike and CLARITY Act setback suggests that the price action had already factored in these developments.
The rebound was attributed to renewed ETF demand, lower oil prices, declining Treasury yields, and short covering, which pushed the price higher. Spot Bitcoin ETFs recorded substantial inflows, with $2.3 billion in total inflows over four sessions. This helped BTC cross $80,000 and settle at $86,594.