Bitcoin Rises After Fed Rate Hike and CLARITY Setback
The market had already priced in the Fed’s move, but the failed CLARITY Act and outflows from spot Bitcoin and Ether ETFs kept pressure on crypto high.
Key Takeaways
- The Federal Reserve raised rates by 0.25 percentage points, but Bitcoin still rose because the market had already priced in the move.
- Bitcoin moved from about $75,350 to nearly $76,500 after the decision and closed around $76,138.
- The crypto market was also under pressure from the failed CLARITY Act, more than $300 million in liquidations, and $592 million in ETF outflows.
The Federal Reserve raised interest rates by a quarter percentage point on Wednesday, its first hike since 2023. Bitcoin still moved higher after the market had already priced in the decision for days. Right before the announcement, the price slipped to about $75,350 (€65,300), then jumped above $76,100 (€66,000) and later briefly touched nearly $76,500 (€66,300) before Bitcoin settled around $76,138 (€66,000).
The Decision Was Already Priced In
The reaction mostly shows how heavily traders had already positioned themselves for the rate decision. According to interest rate futures, the odds of a hike were 92.7% hours before the FOMC decision. That meant the official move was no longer much of a surprise for many traders.
That fits a familiar pattern around the Fed. Traders who adjust their positions before the announcement often react less strongly to the outcome itself. In this case, the first move after the decision even sparked a quick bounce in Bitcoin instead of a sell-off.
More Than Just the Fed
The rate hike was not the only factor in play this week. Bitcoin and XRP were already under pressure after the Senate failed to advance the CLARITY Act. That bill was meant to clarify which federal regulator would oversee crypto.
That setback came alongside more than $300 million (€260 million) in liquidated leveraged positions. Spot Bitcoin and Ether ETFs also saw $592 million (€513 million) in outflows on September 15, the heaviest outflow day in months. That shows the crypto market is reacting not just to macro news, but also to regulation and money flows in investment products.
Why This Matters for Crypto
For European crypto followers, the combination of Fed policy and U.S. regulation is especially relevant. Higher rates can strengthen the dollar, while unclear rules in the U.S. can keep extra uncertainty around Bitcoin, XRP, and other major tokens. That means the market is watching not just inflation and rates, but also political decisions that directly affect crypto trading.
The weakening link with the dollar and stocks was already part of the setup ahead of this rate decision. That piece specifically noted that traders were shifting their attention to the failed procedural vote on the Clarity Act and paying less attention to the classic macro correlations.
