Bitcoin Holds $75K Support After Fed Rate Hike and CLARITY Act Defeat

The Federal Reserve raised its benchmark interest rate by 25 basis points to a 3.75–4.00% range on September 16, marking the first hike since July 2023. Chair Kevin Warsh cited persistent inflation at 3.4% and oil prices above $106 per barrel as justification, with the dot plot projecting one additional hike in 2026.

Bitcoin initially dipped to roughly $74,900 on the day of the decision but closed near $76,145, holding the psychologically important $75,000 level on every daily close that week. The muted reaction contrasted sharply with the 2022 tightening cycle, when Bitcoin fell 77% from $48,000 to $15,500.

“We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed.”

Analysts attribute the resilience to the structural floor created by spot Bitcoin ETFs, which now hold approximately $99 billion in net assets. Over $455 million in leveraged positions were liquidated in the 24 hours before the decision, suggesting sellers had already exhausted themselves.

The Senate rejected the CLARITY Act by a 49–50 vote on September 15, killing the crypto market structure bill for the year. Two days later, the SEC released an Innovation Exemption and the CFTC sent a proposed rule for White House review, moves interpreted by Xapo Bank's Gadi Chait as regulators advancing without congressional approval.

Bitcoin surged approximately 14% in the week following the Fed decision, reaching $86,291 by September 22 and closing above its 50-week moving average for the first time in nearly a year. Hilbert Group's Jesse Marre noted the events were largely anticipated, triggering a dip-buying response.