Bitcoin Surges Past $86,000 as Fed Rate Hike and CLARITY Act Failure Fail to Dent Market

Bitcoin's price surged to $86,000 on September 21, defying expectations that it would fall after the Federal Reserve raised interest rates by 25 basis points and the CLARITY Act failed.

This unexpected move came as US Bitcoin exchange-traded funds (ETFs) attracted $999 million in new investment on Monday, according to Farside Investors data cited by Bitcoin Magazine.

Analyst John Gillen offered an explanation for why the market reaction was different from what some investors expected. He argued that the Federal Reserve's rate hike had already been reflected in market expectations before the decision arrived, making it feel 'almost demanded by traders.'

Gillen also pointed out that the CLARITY Act had gradually become legislation designed to protect banks rather than help crypto, and its failure was seen as a 'max bullish outcome' for the industry.