Bitcoin Surges Past $85,000 as CLARITY Act Fails and Fed Hikes Rates

The Bitcoin price surged to $86,291 after the Senate voted down the CLARITY Act and the Federal Reserve raised interest rates. Analysts believe that the failure of this bill and the rate hike were anticipated by investors, which is why Bitcoin dipped below $75,000 before bouncing back.

According to Jesse Marre, a senior portfolio manager at Hilbert Group, the vote and rate hike were already expected, leading to the brief dip in price. The $75,000 support level was tested but held on each trading day, showing buyer confidence.

The Senate's rejection of the CLARITY Act marked a crucial step, as it required 60 votes to advance. The following day, the Fed raised its target interest rate by a quarter percentage point, marking the first increase since 2023.

Bitcoin ETFs pulled in $999 million on September 21, the highest one-day inflow since October 2025, led by BlackRock, ARK, and Fidelity. Analyst Marre views this strong follow-through as the start of a new bull market.