Bitcoin Defies Odds to Surge Past $81,000 Amid Clarity Act Blockage and Interest Rate Hike
Bitcoin's price surged above $81,000 on Friday, trading at around $80,982 after a nearly 6% 24-hour gain. The rally came despite lawmakers blocking the Clarity Act and the Federal Reserve hiking interest rates.
The Clarity Act aimed to divide oversight between regulators, but it was blocked in a procedural vote by lawmakers on Tuesday. The Federal Reserve also increased borrowing costs due to skyrocketing inflation in the U.S., with chair Kevin Warsh saying that price stability is the Fed's number one priority.
Bullish signals came from Bitcoin exchange-traded funds in the U.S., which experienced net negative flows earlier in the week, but saw a $160 million inflow on Thursday. Asset manager Grayscale said it didn't expect bitcoin's price to be hurt by the Fed's decision, calling it a mid-cycle adjustment.