Bitcoin Surges Past Eight-Month High as Fed Hikes Interest Rates
Wintermute, a market data provider, released its weekly report on September 21. The US Federal Reserve raised interest rates by 25 basis points to 3.75-4% with a unanimous vote of 12-0. This move was seen as one of the two major catalysts for the market, along with the CLARITY bill. However, the bill failed to pass in the Senate, falling short of the required 60 votes.
Despite this setback, the SEC and CFTC announced that they would establish regulatory rules for cryptocurrencies within their existing authority. The market adjusted accordingly, with prices recovering within a single trading day.
Bitcoin (BTC) traded between $75,000 and $81,000, setting a new high of $81,159 on its 50-week moving average since November last year. Ethereum (ETH) saw a 6.7% increase in value, trading between $2,350 and $2,600.
According to data from ETFs, the net outflow was approximately $60 million over five trading days, with a significant influx of $5.93 billion on Thursday. The CLARITY bill-induced outflow was largely recouped within 48 hours.