Weekly Summary: Fed Raises Key Rate While Bitcoin Surges to $81,000

Bitcoin has surged past the $80,000 mark, rising to approximately $81,000, despite the Federal Reserve's recent interest rate increase and a setback for the CLARITY Act in the U.S. Senate.

Bitcoin's Remarkable Rise

Starting the week around $77,000, Bitcoin's price climbed unexpectedly after the Federal Reserve's decision to raise interest rates. Instead of reacting negatively, Bitcoin saw a slight gain of about 1% following the announcement. A temporary drop to $75,000 occurred after the CLARITY Act failed to pass a procedural vote in the Senate, attributed to American investors selling off their holdings.

However, Bitcoin rebounded impressively, achieving a 5% increase overnight on September 18-19, ultimately ending the week with over a 4.8% gain and solidifying its position above $80,000. Other cryptocurrencies also showed notable gains, with Zcash increasing by 32% and Solana by 8%.

During the week, spot Bitcoin ETFs saw inflows of $6.21 million, with a significant $433 million invested on Friday alone. In contrast, Ethereum funds faced a decline, losing $140 million, yet the total asset value in investment products rose from $16.3 billion to $16.7 billion due to Bitcoin's price surge.

The cryptocurrency fear and greed index improved from 61 to 71, indicating a shift toward moderate greed, while the overall market capitalization of digital assets increased from $2.63 trillion to $2.75 trillion. Bitcoin's market dominance remained stable at 58.9%, whereas Ethereum's share fell slightly to 11.5%.