Bitcoin Holds Near $75,000 Despite Fed Hike and Clarity Act Failure
Bitcoin held near $75,000 after the Federal Reserve raised interest rates and the US Senate rejected the Clarity Act, suggesting traders had largely priced in both events. Bitcoin absorbed $571 million in long-position liquidations during the 24 hours after the Senate vote but avoided a deeper sell-off.
Analysts expect Bitcoin to trade in a range until a fresh catalyst emerges. A move above $77,950, followed by $79,300 and $80,000, could signal a breakout towards $81,400. A fall below $75,000 would weaken the recovery and raise downside risks.
The Clarity Act’s failure leaves statutory uncertainty in the US crypto market. However, analysts expect the Securities and Exchange Commission and Commodity Futures Trading Commission to continue developing rules under existing authority. The SEC’s temporary conditional exemption for eligible platforms trading tokenised US stocks was cited as evidence that regulatory progress can continue.
Market participants remain divided. Some see Bitcoin’s resilience as evidence that liquidity, adoption and broader macroeconomic trends matter more than US legislation. Others, including Sigma Capital’s Vineet Budki, say the recent recovery does not confirm that a market bottom is in. Traders are watching the October 2 jobs report, October 14 Consumer Price Index release, exchange-traded fund flows and renewed spot buying for signs of Bitcoin’s next major move.
Neutral
The market impact is neutral because Bitcoin’s price remained resilient despite two potentially bearish catalysts: a Federal Reserve rate increase and the Senate’s rejection of the Clarity Act. The muted spot reaction suggests both events were largely anticipated, although the $571 million liquidation wave shows that leverage remains a short-term risk.
In the near term, Bitcoin is likely to remain range-bound. Resistance around $77,950 to $80,000 is important for breakout traders, while $75,000 is the key downside level. A sustained move above $80,000, supported by ETF inflows and spot demand, could turn the outlook bullish. A break below $75,000 could trigger renewed liquidations and worsen sentiment.
The regulatory setback is a longer-term negative because it delays statutory clarity for crypto businesses and investors. However, continued action by the SEC and CFTC may limit the immediate damage. Similar past episodes show that markets often sell off before major political or regulatory decisions and stabilise when the outcome is already priced in. The article also notes that Bitcoin has historically remained resilient during periods of regulatory pressure.
Macro indicators remain decisive. Higher interest rates, weak economic data or risk aversion could weigh on Bitcoin, while improving liquidity, ETF inflows and stronger adoption could support a recovery. The next significant volatility triggers are the US jobs report and CPI release. Until those events provide a clearer signal, a neutral, consolidation-focused view is more appropriate than a firm bullish or bearish call.