Bitcoin Holds at $77,000 Amid Rate Hikes and Regulatory Setback

Bitcoin (BTC) limited its September decline to 1.5% despite U.S. interest rate hikes, the rejection of the CLARITY Act in the Senate, and rising oil prices. On September 18, Bitcoin traded around $77,000, holding some gains from August's rise. The Federal Reserve raised its target federal funds rate range by 25 basis points to 3.75%-4.00% on September 16, citing persistent high inflation. In the U.S. Senate, a procedural vote to advance the CLARITY Act failed 49-50, requiring 60 votes for progression.

Bitcoin rose nearly 25% in August to around $81,000 before correcting in September, closing at $76,371 on September 17. CoinDesk reported a September decline of approximately 1.5%, with a quarterly gain of about 32%. If this trend continues, Bitcoin could close the quarter with its first quarterly rise since Q3 2025, per CoinDesk's analysis on September 18.

Japan's central bank raised its policy rate to 1.25% on September 18, effective September 24, citing approaching a 2% base inflation rate and easing financial conditions. The Bank of England held rates at 3.75%, warning about energy price impacts on inflation. Oil prices also pressured markets, with West Texas Intermediate (WTI) reaching $106.75 intraday on September 15 before closing at $105.83.

Despite multiple headwinds, Bitcoin's limited downside led to weaker selling pressure, according to Mitchell Askew of Blockware Intelligence. He noted that Bitcoin barely moved amid the Fed rate hike and CLARITY Act vote failure, interpreting reduced market impact as a sign of exhausted selling pressure. On the other hand, Fabian Dori of Sigmapoint warned about risks from further tightening and potential Treasury yield increases.

Separately, the SEC announced temporary conditional exemptions allowing some tokenized stock trading on approved platforms, with conditions including transaction limits, investor protections, and smart contract audits. The exemption expires in five years and is open for additional feedback. While the CLARITY Act aimed at comprehensive digital asset regulation, the SEC move represents a limited extension of existing authority.