Bitcoin and US Stocks Rebound as Traders Shake Off Fed Rate Hike

The CLARITY Act failed in the Senate with a 49-50 vote, falling short of the 60 needed for passage. XRP dropped 7.98% to $1.29, while Bitcoin fell 1.42% to $75,924. Coinbase and Circle shares declined 8% and 11% respectively. The act's failure leaves regulatory uncertainty for cryptocurrencies, with their values now dependent on SEC initiatives and market conditions.

Grayscale's Zach Pandl stated Bitcoin (BTC) bottomed at ~$58K on June 30, advising clients to allocate to crypto. BTC traded above $76K on Sept. 17, 39% below its all-time high. Grayscale's allocation framework considers structural trends, market cycles, and macroeconomic conditions, all of which are currently met. Pandl also highlighted Zcash (ZEC) for its privacy features.

Goldman Sachs revised its Fed rate hike forecast twice in four days, initially expecting one hike then predicting another in October. The Fed raised rates to 3.75%-4.00% in September 2026, with 16 of 18 policymakers signaling another hike by year-end. Bitcoin gained 0.5% post-announcement, trading at $76,000, while XRP may also be affected by higher rates.

BlackRock's iShares Bitcoin Trust (IBIT) ETF acquired $1.08 billion in BTC over 20 days, now holding 785,900 BTC valued at $61 billion. Grayscale's GBTC saw outflows, possibly due to higher fees. American spot Bitcoin ETFs collectively hold over 1.2 million BTC ($92 billion), representing 6% of the total supply.

The House Ways and Means Committee advanced the Digital Asset Tax Certainty Act 38-5, exempting small Bitcoin (BTC) transactions from capital-gains reporting. The bill extends wash-sale rules to crypto, ending immediate repurchase strategies. It also clarifies tax treatment for stablecoins, lending, mining, and staking. The bill's bipartisan support and revenue-raising provisions may improve its chances of passing.

Bitcoin traded near $76,000 after the Fed raised rates by 25 basis points, with US stocks rebounding the next day. Fed Chair Warsh called inflation 'unacceptable' and hinted at further hikes. Bitcoin ETFs saw outflows, and the Senate rejected crypto regulation. Oil price drops helped ease inflation expectations.