Bitcoin Stuck Below $80k as Fed Hikes Rates and Clarity Act Hits Roadblock

Bitcoin's price is struggling to break above $80,000, according to Coinshares' James Butterfill. The Federal Reserve's recent rate hike on September 16 and new projections for higher rates in 2026 and 2027 are creating hurdles for the price this year.

The Fed raised its target rate to a range of 3.75% to 4%, citing elevated inflation and solid economic growth. Butterfill noted that the new rate forecasts, which put the median rate at 4.1% for both 2026 and 2027, create a tough setup for bitcoin into year-end.

A break above $80,000 would require either better inflation data or a shift in Fed expectations, according to Butterfill. He also pointed out that conflict-driven energy costs are adding to inflation pressure, making it less likely for the Fed to change its policy soon.