Crypto traders braced for a total wipeout this week but Bitcoin had other plans
Market experts view bitcoin’s price stability as evidence of its fundamental independence from Washington, maintaining that global liquidity and adoption cycles remain the primary growth drivers.
A week ago, it felt as if the world was about to fall apart for bitcoin and the wider crypto market. Most participants expected a Fed rate hike and the Clarity Act’s failure in the Senate to trigger a sharp sell-off.
But it didn’t—even though the Fed hiked rates and the Clarity Act failed in the Senate. Market participants are split on what drove the resilience and what it means for the near-term outlook.
Ahead of the Senate vote on the night of Sept. 14, bitcoin fell as pre-vote jitters grew and rumors circulated about partisan gridlock over stablecoin yields and the bill’s ethics amendments. However, market analysts believe bitcoin remains insulated from legislative issues and could continue its upward trend.
“The SEC’s move gives investors a reason to look beyond the failed vote. I expect bitcoin to finish the year higher, with liquidity conditions and the debasement trade carrying more weight in my forecast than the timing of any individual bill,” Davis said.