Bitcoin Price Prediction: BTC Reclaims $81,000, Can It Keep Rising After Digesting Fed Headwinds?

TradingKey - On Sunday (September 20), Bitcoin (BTC) consolidated at high levels following Thursday's rebound, currently trading around $81,100. Previously hit by the failure to advance the U.S. crypto bill and the Federal Reserve's rate hike, Bitcoin once fell to around $75,500, but subsequently reclaimed the $76,000, $78,000, and $80,000 marks in succession, improving market sentiment.

The main reason behind Bitcoin's rapid rebound from around $75,000 to above $81,000 in this cycle is that after two major headwinds—the stall of the U.S. crypto bill and the Federal Reserve's rate hike—materialized in succession, expectations of further deterioration failed to emerge, prompting the market to begin unwinding its previously over-concentrated pessimistic pricing.

First was U.S. crypto regulatory policy. On September 15, the U.S. Senate failed to advance the CLARITY Act, with the bill receiving only 50 votes in favor, falling short of the 60-vote threshold required for procedural approval. The bill was originally intended to further clarify the regulatory authorities of the SEC and CFTC over digital assets; thus, following the failed vote, Bitcoin and crypto-related stocks dropped noticeably for a time. However, this outcome did not mean that the U.S. crypto regulatory process had come to a complete halt. The SEC and CFTC subsequently continued to push forward rulemaking related to digital assets, and the worst-case regulatory scenario did not escalate further, which helped the market gradually digest the shock of the bill's failure.