By Bitcoin remained pinned near the $75,000-$76,000 region on Thursday, showing little sustained recovery after two major policy shocks hit cryptocurrency markets this week.
The largest cryptocurrency traded around $76,560 on September 17, according to Reuters, after falling below $75,000 earlier in the week. Bitcoin had traded above $82,000 earlier this month, leaving it roughly 7% below that recent peak.
The latest pressure followed Wednesday’s Federal Reserve decision to raise its benchmark interest rate by 25 basis points to 3.75%-4.00%, its first increase in three years and the first policy change under Chair Kevin Warsh.
Higher rates typically create a tougher backdrop for risk assets by increasing yields available on cash and government securities. The Fed’s accompanying projections delivered another headwind: 16 of 18 policymakers anticipated at least one additional quarter-point increase before year-end. Interest-rate futures subsequently priced roughly a 90% probability of another hike in 2026.
CLARITY Failure Adds a Crypto-Specific Shock
Bitcoin was already under pressure before the Fed announcement. On September 15, the Senate failed to advance the Digital Asset Market Clarity Act after a 50-49 vote fell short of the 60 votes required to overcome the procedural hurdle. Four Republicans joined Democrats in voting against advancing the legislation.
Bitcoin fell more than 5% as the legislation appeared headed for defeat, its largest daily percentage decline since June. Coinbase and Circle shares also fell as much as 10%.
The legislation would have established a federal market-structure framework for digital assets and clarified responsibilities between the SEC and CFTC. Its failure does not prevent those agencies from developing crypto rules using existing authority, but industry executives have argued that agency-level regulation is less durable because future administrations can change course.
The regulatory setback has therefore provided Bitcoin with a crypto-specific headwind at the same time that tightening monetary conditions are weighing on risk assets more broadly.
ETF Investors Continue Pulling Capital
Institutional flows have added another layer of pressure.
U.S. spot Bitcoin ETFs recorded $450.4 million of net withdrawals on September 15, led by Fidelity’s FBTC at $214.8 million and BlackRock’s IBIT at $161.7 million. Grayscale’s GBTC lost another $44.1 million.
The selling continued on September 16. Farside’s latest data show another $151.8 million of net outflows, before any final BlackRock figure, with ARK 21Shares’ ARKB losing $84.4 million, Fidelity’s FBTC losing $52.7 million and GBTC shedding $18.2 million. Morgan Stanley’s MSBT attracted $3.5 million.
Those flows leave Bitcoin facing several simultaneous obstacles: weaker institutional demand, higher U.S. interest rates, a stronger dollar and diminished expectations for near-term congressional crypto legislation.
Yet the market has so far resisted a deeper breakdown. After briefly slipping below $75,000, Bitcoin recovered above $76,000 following the Fed decision.
That makes the $75,000 region an increasingly important near-term battleground. Bitcoin has absorbed a failed CLARITY vote, hundreds of millions of dollars of ETF redemptions and the beginning of a new Fed tightening cycle within days — but has, for now, continued trading close to that level.