Rate Hike Over Regulation Drives Bitcoin Above $81K

Bitcoin's price surged past $81,000 on Saturday, and according to Arthur Hayes, CEO of Flop Labs, this was largely due to the Federal Reserve's rate hike earlier in the week. The Fed raised its benchmark rate by 25 basis points to a range of 3.75% to 4%, marking its first increase since July 2023.

Hayes dismissed the Digital Asset Market Clarity Act (CLARITY Act) as 'nonsense' and argued that a rate hike, which channels more money to wealthy investors, was what really lifted Bitcoin's price.

However, not everyone shares Hayes' view. Grayscale's head of research, Zach Pandl, described the Fed's move as a mid-cycle adjustment rather than a cyclical policy shift, and noted that higher rates tend to weigh on assets with no income.