Bitcoin Hits an Eight-Month High as Fed Hikes Rates and CLARITY Bill Fails

Wintermute published its weekly market report. On Sept. 21, the Federal Reserve voted 12"0 to raise interest rates by 25 basis points, taking the target range to 3.75%"4.00%. Sixteen officials still expect at least one additional hike this year, and they do not see inflation returning to the 2% goal until after 2029. Two key overhangs for markets"the FOMC decision and the CLARITY bill"were settled over the week. The CLARITY bill failed in the Senate, 49"50, short of the 60-vote threshold. The SEC and CFTC subsequently said they would move to establish crypto regulatory frameworks using existing authority. Risk assets recouped losses within a single trading session. BTC traded between $75,000 and $81,000 during the week and finished at $81,159, marking its first close above the 50-week moving average since last November. ETH gained 6.7%, trading in a $2,350"$2,600 range. ETF flows were volatile. Funds saw $746 million of net outflows from Tuesday to Wednesday, followed by $593 million of inflows from Thursday to Friday, leaving a roughly $6 million net outflow across five sessions. Outflows linked to the CLARITY vote were almost fully reversed within 48 hours. At the start of the new week, BTC and ETH broke above their respective range ceilings before U.S. equities opened, alongside about $250 million in long liquidations. BTC briefly touched $86,000, its highest level in eight months. Wintermute believes