Fed Rate Hike Sends Bitcoin Soaring Past $84,000

Bitcoin surged past $84,000 on Monday morning after the Federal Reserve's rate hike, jumping approximately 5% in the session and over 8% for the week. The rally follows the failure of the CLARITY Act in the Senate, which had been seen as a potential catalyst for regulatory change in the crypto market.

Arthur Hayes, co-founder and CEO of Flop Labs, argued that regulation was never the true driver of the crypto market's growth. He believes that the rate hike puts more dollars in the hands of high-net-worth investors, who then channel that liquidity into financial assets like Bitcoin.

Zach Pandl from Grayscale compared this rate hike to a similar adjustment made by the Fed in March 1997, which did not interrupt the Nasdaq bull market. However, Hayes's view is supported by the market's reaction, with daily trading volume reaching $85.6 billion on Monday.