Bitcoin Holds Steady Amid Regulatory Uncertainty and Rate Hikes

The crypto market faced significant challenges this week, including the delay of the CLARITY Act and the first Fed hike since 2023. However, Bitcoin (BTC) held up surprisingly well, with ETF inflows quickly recovering after a brief pause.

Despite the uncertainty surrounding U.S. crypto regulation, which has been moving forward through various government agencies, institutional flows turned cautious. However, this caution was short-lived, as ETF net inflows returned on September 17, indicating that demand for crypto remained resilient.

The market structure also appears healthier than expected, with leverage significantly reduced and funding remaining positive but moderate. This is a welcome sign, given the volatility of recent weeks.