Bitcoin Holds Steady Despite Fed Hike and CLARITY Act Failure

The crypto market has been consolidating after the Federal Reserve's interest rate hike and the failure of the CLARITY Act. Despite expectations that the market would break down, Bitcoin is trading near $77,900 with a 20.5% gain over the past 30 days.

The bad news was already priced in by traders before the events unfolded. The Fed hike had a 93% probability of occurrence in futures markets, and the CLARITY Act's passage odds were falling weeks prior to its defeat. Traders had been repricing the legislative path for weeks.

Institutional demand remains strong, with total Bitcoin ETF assets above $103 billion after August's $3.52 billion inflow. Altcoin funds also saw net inflows on days when spot prices fell, indicating continued interest from investors.

Regulation is moving forward without Congress, with the SEC and CFTC taking steps to clarify rules for tokenized assets. The House Financial Services Committee advanced a bill related to US Bitcoin reserves, keeping that idea alive.