The crypto market has just gone through a busy week, between American inflation, Fed decision and vote on CLARITY. However, bitcoin has returned to levels it had not reached for two weeks. After several sudden movements, buyers gradually regained control. The rejection of the bill by the Senate and the rate increases by the Fed and then the BOJ did not prevent the market from taking off again. The course remains marked by high volatility and several rapid reversals.
In brief
- Bitcoin went through a week marked by US inflation and several sharp movements.
- The rejection of the CLARITY bill by the Senate caused a further decline in the market.
- The Fed’s 25 basis point increase did not prevent the price from rising quickly.
- Bitcoin finally returned to its levels of two weeks ago despite the BOJ’s rate hike.
An open week under great tension
Seven days earlier, US CPI figures confirmed the persistence of inflation. The Federal Reserve then had the necessary elements to prepare its monetary decision of September 16. Expectations were thus focused on an increase in rates, while bitcoin reacted strongly to the new economic data.
After the publication of the CPIits price rose from 77,000 to 76,000 dollars. It then jumped sharply towards $79,800 before suffering a marked rejection. One hour was enough to concentrate these opposing movements, before a return to calm during the weekend.
The market then moved around $77,000. However, this lull did not last long. On Monday, the price fell to $76,400, then buyers took control, allowing bitcoin to rise towards $79,600 before the CLARITY vote.
The rejection of CLARITY causes a new setback
The day before the vote, the market carefully followed the evolution of the bill. The price had already left its peaks when the Senate formalized the rejection of the motion intended to advance the text. This announcement reinforced the selling pressure.
Bitcoin then fell to $75,000, its lowest level in three weeks. Despite this new decline, buyers managed to defend this area. The market held a base before the conclusion of the FOMC meeting.
The next day, the Fed raised rates by 25 basis points. This decision came after more than three years without an increase, but bitcoin did not experience a lasting negative reaction. Its price initially slipped towards $75,000, before rising above $76,000 in a few minutes.
BOJ hike does not prevent Bitcoin rebound
On Thursday, then especially on Friday, the price of bitcoin continued to increase. The Bank of Japan nevertheless raised its rates by 25 basis pointsbringing its level to a peak not seen in 31 years. Despite this new monetary pressure, bitcoin crossed $78,000 during the session.
The movement accelerated with the opening of the American markets. The price reached $81,000, its highest level in two weeks. After this rise, the market stabilized bitcoin around this peak.
Thus, BTC ends in the green after a succession of unfavorable events. This development comes at a time when altcoins are also experiencing strong variations. The ZEC continues to rise, while NEAR gains 35%. UNI grew by more than 30%, followed in particular by HYPE and BCH, while RAIN fell by 22%.
In the short term, BTC is therefore approaching the rest of the market after having resisted several major announcements. Its evolution will now depend on the way in which operators digest these events and the ability of the price to maintain the levels recently found.
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