Bitcoin Reclaims $81,000 Amid ETF Inflows and Regulatory Optimism

Bitcoin's price has recovered to over $81,000, shrugging off recent headwinds. The U.S. Senate's rejection of a regulatory framework bill and the Federal Reserve's interest rate hike had initially sparked selling pressure.

However, institutional buying through spot exchange-traded funds (ETFs) has provided a floor for prices. U.S. spot Bitcoin ETFs saw net inflows of $159.5 million on the 17th, followed by approximately $433 million on the 18th.

The defeat of the CLARITY Act may have created regulatory uncertainty, but analysts believe that financial regulators will continue to push forward with institutional reforms using their existing authorities.

Jag Kooner, head of derivatives at Bitfinex, notes that 'the market never had high expectations for the Senate to pass the bill in the first place.'