Fed Rate Hike Trumps Failed Crypto Bill: Bitcoin Surges to $81K

The Federal Reserve's rate hike has been credited by Arthur Hayes, CEO of Flop Labs, as the reason behind Bitcoin's price surge to over $81,000. In a recent post on X, Hayes dismissed the failed Digital Asset Market Clarity Act (CLARITY Act) as 'nonsense' and argued that the rate hike was what truly lifted Bitcoin.

The Federal Reserve raised its benchmark rate by 25 basis points to a range of 3.75% to 4%, marking its first increase since July 2023. The move, according to Hayes, channels more money to wealthy holders of financial assets, which in turn drives up the price of Bitcoin.

However, not everyone agrees with Hayes' assessment. Grayscale's head of research, Zach Pandl, described the rate hike as a 'mid-cycle adjustment' and stated that it is unlikely to drive major changes in crypto markets.