Bitcoin Stalls at $80,000 as Hawkish Fed and Clarity Act Setbacks Weigh
Bitcoin's recovery from $62,000 in August has stalled at around $80,000, with market analysts seeing this level as a critical resistance point for the cryptocurrency.
James Butterfill, CoinShares' Head of Research, stated that Bitcoin faces two major obstacles: a more hawkish Fed and setbacks in the Clarity Act. Unless there is significant improvement in inflation outlook or a shift in expectations regarding Fed monetary policy, a definitive breakout above $80,000 for Bitcoin is unlikely.
Butterfill also noted that regulatory uncertainty may not be felt equally across all cryptocurrencies, with Bitcoin being relatively more protected due to its clearer current regulatory status. However, Ethereum and other altcoins are more exposed to negative regulatory developments.
According to Glassnode, $80,000 is the first critical threshold for Bitcoin, surpassing which would indicate a re-entry into an upward trend. The next key area is around $85,000, the cost floor of a US spot Bitcoin ETF.