Bitcoin Price Takes Hit as Regulatory Optimism Fades Amid Hasrate Bump
The Bitcoin price took a reality check after the Senate failed to advance the CLARITY Act on September 15, following extreme FOMO (fear of missing out) around regulatory optimism.
On September 14, Santiment Insights described this euphoria as 'regardless of how the decision eventually turned out,' warning about the risks of getting caught up in overly bullish narratives.
The mood quickly changed when the Senate failed to advance the CLARITY Act, causing Bitcoin prices to drop. Then, on September 16, the Fed raised rates by 25 basis points to 3.75%-4.00%, signaling additional tightening may follow.
CryptoQuant's analysis suggests a potentially positive development for Bitcoin: the hashrate has ended its downward trend and is gradually increasing again. Historically, higher miner activity can lead to bullish trends in Bitcoin price, although miners tend to increase activity when prices rise.