Bitcoin Stabilizes Near $77,900 After Fed Hike and Legislative Setback

Bitcoin trades near $77,900 as of Friday. The asset held this level despite the Federal Reserve raising interest rates on Wednesday. The Senate also rejected the CLARITY Act on Tuesday. Two negative catalysts occurred within 24 hours. The market absorbed both events without a significant price drop.

Bitcoin gained 20.5% over the past 30 days. The price moved from roughly $64,000 in mid-August to the high $70,000s. August alone delivered a 25% gain. The current range between $75,000 and $78,000 reflects consolidation. The market is shaking out leverage and waiting for the next input.

Market Absorption of Negative News

Futures markets priced the Fed hike at 93% odds before the meeting. Bitcoin spiked to $76,500 within five minutes of the decision. The price returned to its previous level within half an hour. This reaction indicates the market had already absorbed the hawkish shift. The legislative setback followed a similar pattern. Traders repriced the probability of the CLARITY Act for weeks. Bitcoin climbed above $80,000 in early September even as passage odds fell.

Institutional Demand Remains Strong

Total Bitcoin ETF assets exceed $103 billion. August recorded $3.52 billion in inflows, the best month of 2026. Altcoin funds showed similar strength. Ethereum, Solana, and XRP ETFs posted net inflows of $10.95 million, $10.19 million, and $14.38 million on days when spot prices fell. XRP funds saw 11 consecutive days of net buying worth roughly $170 million.

Nasdaq invested $100 million in Payward, Kraken's parent company, on September 10. The valuation was $21 billion. The Canary staked TRX ETF launched on September 9. It is the first spot staked crypto fund in the US. JPMorgan noted on September 16 that Bitcoin ETFs have recovered only half of their 2026 outflows. Short interest in BlackRock's IBIT remains near its highest level of the year. Unwinding this hedging pressure could fuel further gains.

Regulatory Progress Continues Without Congress

The SEC opened a comment period for Regulation Crypto Assets in August. It also launched a five-year pathway for tokenized US stock trading. The CFTC chair instructed staff to build a market-structure regime under existing authority. These actions do not depend on the Senate. The House Financial Services Committee advanced the American Reserve Modernization Act by a 28-21 vote. Canada's financial regulator clarified that tokenized bank deposits are legally equivalent to traditional deposits. The regulatory direction has not reversed.