Bitcoin Reaches $81K Amidst Regulatory Setbacks and Rate Hike

The price of Bitcoin reached $81,055 on Friday morning in New York, defying expectations amidst a week of negative news. The Clarity Act was blocked in Congress, and the Federal Reserve raised its benchmark interest rates for the first time since the current inflationary cycle began.

The rejection of the Clarity Act weighed on sentiment, while the hawkish tone from Fed Chair Kevin Warsh put pressure on risk assets like Bitcoin. Additionally, investors pulled nearly $427 million from spot Bitcoin ETFs over the course of the week before flows turned positive again on Thursday with $160 million in fresh inflows.

Grayscale argued that the rate hike should not have a lasting impact on Bitcoin's price, citing it as a mid-cycle adjustment rather than a major cyclical shift. The broader regulatory dynamic remains largely constructive, with the SEC advancing pro-crypto initiatives in parallel with legislative setbacks.