Bitcoin Price Dashed by FOMO Flush as Hashrate Turns Higher

The Bitcoin price faced a reality check earlier this week due to extreme FOMO across the crypto community. On September 14, Santiment Insights described the euphoria as bullish narratives surged around expectations for a favorable CLARITY Act outcome.

However, the mood changed quickly on September 15 when the Senate failed to advance the CLARITY Act, and Bitcoin fell as regulatory optimism unwound.

This FOMO flush was followed by another risk-off catalyst: the Fed raised rates by 25 basis points to 3.75%-4.00% on September 16, signaling additional tightening may follow.

Crypto sentiment cooled back near neutral after both events, with Santiment's view that enthusiasm has been flushed out and fear is rebuilding, creating a different market backdrop from the extreme FOMO seen at the start of the week.

Meanwhile, CryptoQuant's analysis points to a potentially constructive development for Bitcoin. The Bitcoin hashrate has ended its downward trend and is gradually increasing again.