This week, Bitcoin (BTC) plunged following waning expectations surrounding US crypto regulations, before making a recovery heading into the weekend.
The primary catalyst weighing on the market early in the week was the US Senate's rejection of a cloture motion for the Clarity Act on September 15. As hopes for regulatory clarity evaporated, BTC recorded a single-day drop of up to approximately $4,600.
Macroeconomic headwinds compounded the pressure. Crude oil futures rose amid supply concerns driven by Middle East tensions, while surging long-term US interest rates also dragged on the market. Although the FOMC decided on a rate hike on September 16—its first in three years—the move had already been fully priced in by the market and served as a non-event.
Once the rate hike passed and selling pressure abated, buy-side momentum strengthened from mid-week into the weekend, pushing BTC back above the $80,000 threshold. Supporting this rebound, the US Securities and Exchange Commission (SEC) announced measures to facilitate the trading of tokenized equities, while the Commodity Futures Trading Commission (CFTC) signaled its intent to establish crypto trading rules using its existing authority.
Further support came from the US House Ways and Means Committee passing a bill aimed at clarifying crypto taxation rules. Although disappointment over the stalled Clarity Act lingers, excessive pessimism receded as market participants recognized that administrative agencies and Congress are continuing to advance regulatory frameworks in parallel, solidifying the market's recovery trend toward the weekend.
