Bitcoin Jumps Above $81,000 Despite Clarity Act Block and Fed Rate Hike
Bitcoin climbs past $81,000
Bitcoin’s price shot above $81,000 on Friday, despite a week of setbacks for the crypto industry. The largest cryptocurrency was recently trading for $80,982, after jumping as high as $81,055 at one point Friday morning in New York. Over the past 24 hours, it has risen by nearly 6%.
The surge came after lawmakers on Tuesday blocked the Clarity Act, long-awaited crypto legislation, and the Federal Reserve on Wednesday hiked interest rates.
Key numbers and events
- Bitcoin reached $81,055 on Friday morning, then traded near $80,982.
- Bitcoin rose nearly 6% in 24 hours.
- Lawmakers blocked the Clarity Act, a bill that aimed to divide crypto oversight between regulators.
- The Federal Reserve increased borrowing costs for the first time due to rising U.S. inflation.
- U.S. bitcoin exchange-traded funds (ETFs, investment vehicles that track bitcoin's price) saw net outflows of nearly $427 million this week, according to Farside Investors data.
- Flows turned positive on Thursday, with investors adding nearly $160 million to the funds after two days of outflows.
What the Fed and regulators said
Federal Reserve Chair Kevin Warsh said price stability in the U.S. was the Fed’s number one priority. “The plain fact is that inflation is too high, and has been for too long,” Warsh said. “This summer’s inflation readings do not tell me that underlying trends have meaningfully improved.”
In a research note Thursday, asset manager Grayscale said it did not expect bitcoin’s price to be hurt by the Fed’s decision because the move reflects a mid-cycle adjustment, not a cyclical change. The note was reported by Bitcoin Magazine.
Also, despite lawmakers blocking the Clarity Act, regulators like the SEC are already pushing ahead with pro-crypto regulation, according to the report.
What is confirmed
Bitcoin’s price exceeded $81,000 on Friday and traded around $80,982. The 24-hour gain was nearly 6%. Lawmakers blocked the Clarity Act on Tuesday. The Federal Reserve hiked interest rates on Wednesday, its first increase, citing high inflation. U.S. bitcoin ETFs saw net outflows of nearly $427 million this week, with positive flows of nearly $160 million on Thursday, per Farside Investors data.
What is still unclear
The article does not specify the exact reasons for bitcoin’s price jump, saying only that the surge came after the week’s negative news. It also does not provide details on how lawmakers voted on the Clarity Act or the size of the Fed’s rate hike.
Why this matters for crypto investors
The price move shows bitcoin trading higher despite regulatory setbacks and a rate hike. Historically, bitcoin has done well in low interest rate environments because lower rates mean more liquidity to trade the asset. Whether this rally continues is not addressed in the sources.
What happens next
The sources do not specify a clear next step or timeline. The article notes that regulators such as the SEC are already pursuing pro-crypto regulation despite the Clarity Act failure.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.