Bitcoin confronted a second significant Washington development on September 16, as the Federal Reserve raised interest rates a day after the Senate was unable to advance the CLARITY Act.
The Federal Open Market Committee voted 12-0 to increase the federal funds target range by 25 basis points to 3.75%-4.00%, marking the first rate hike since 2023. The Fed noted that inflation “remains elevated” and that the move would support a more timely return to its 2% target.
The unanimous decision places the central bank in direct opposition to President Donald Trump, who has advocated for lower borrowing costs and stated earlier this month that the U.S. “should be paying the lowest interest rate in the world.”
The CLARITY Act, legislation that would establish a federal regulatory framework for digital assets and clarify the oversight responsibilities of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), failed to advance in a 49-50 Senate cloture vote on Tuesday. A minimum of 60 votes was required for the measure to proceed.
The Fed’s decision carries significant implications for Bitcoin, as higher interest rates tend to boost yields on lower-risk assets and tighten overall financial conditions, typically creating a more challenging environment for speculative assets.
Bitcoin Whale Moves $122 Million
In the hours leading up to the Fed announcement, a major Bitcoin holder transferred 1,604 BTC, valued at approximately $122.1 million, between two unidentified wallets.
Blockchain transaction tracker Whale Alert logged the transfer at 12:20 UTC on September 16, when Bitcoin was trading near $76,052. The transaction incurred a minimal fee of just 0.000001 BTC.
The transfer does not, in itself, indicate that the Bitcoin was sold. Both the originating and receiving addresses were classified as unknown wallets, meaning there is no definitive evidence that the funds were moved to an exchange or any other venue where they could be readily liquidated.
Nevertheless, the timing is notable, coming just hours before a Fed decision that markets anticipated could result in a rate hike, and one day after the CLARITY Act setback added to prevailing pressure.
Bitcoin stabilized following Tuesday’s sharp decline and the Fed’s subsequent decision to raise rates by 25 basis points.
The development suggested that much of the rate increase had already been factored into market expectations, with the broader cryptocurrency market also showing signs of stabilization after the initial risk-off response.
Bitcoin was trading near $75,921 at the time of writing.
