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PrimeXBT Insights: Bitcoin rallied through a rate hike; Can it rally through a bond selloff?
In mid September, the CLARITY Act failed in the Senate on 15 September, and the Fed raised its rate the next day, according to the article.
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What happened
In mid September, the CLARITY Act failed in the Senate on 15 September, and the Fed raised its rate the next day, according to the article.
Confirmed
Global impact / market context
A failed crypto law and a Fed rate increase can pressure Bitcoin because higher rates make safer investments more attractive, potentially pulling money away from riskier assets like Bitcoin, which may reduce demand and prices.
Analyst inference
Bitcoin had rallied despite the rate hike, but now faces a bond selloff which means falling bond prices and rising yields, making safer income more appealing and possibly challenging Bitcoin's ability to keep rising.
Analyst inference
What to watch
- The CLARITY Act failed in the Senate on 15 September, which is a confirmed legislative outcome. Confirmed
- Whether Bitcoin can rally through a bond selloff is the question posed, not a confirmed event or outcome. Proposed
- If bond yields keep rising, investors might move money from Bitcoin into bonds, potentially pressuring Bitcoin's price and testing its recent rally. Analyst inference
Affected assets
- 00 — 00 Token
- BTC — Bitcoin