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Texas, September 17, 2026 – Bitcoin fell sharply this week, settling near US$75,900 in London trading on September 16, as investors braced for a potential Federal Reserve rate hike and confronted stalled regulatory progress in Washington.
The cryptocurrency, often viewed as a gauge of risk appetite, is now caught between tightening monetary policy and political gridlock.
The immediate pressure stems from expectations that the Fed will raise interest rates by 25 basis points, with traders assigning a near 90 percent probability to such a move.
Rising U.S. bond yields have already unsettled equities and crypto markets, intensifying concerns that higher borrowing costs will weaken demand for speculative assets.
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Analysts caution that until the Fed’s path becomes clearer, risk assets will remain vulnerable to sharp swings.
Regulation adds another layer of uncertainty. The U.S. Senate recently stalled progress on the Clarity Act, a bill designed to provide clearer rules for digital assets.
Industry leaders, including Ripple’s Brad Garlinghouse and Coinbase’s Brian Armstrong, criticized the delay, urging agencies like the SEC and CFTC to step in with workable frameworks.
Without harmonized rules across major economies, crypto’s integration into mainstream finance remains fragile.
Market positioning reflects the strain. More than US$540 million in bullish bets were liquidated within 24 hours, while U.S. listed spot Bitcoin ETFs saw US$450 million in net outflows on September 15, the largest withdrawal since June.
Yet optimism persists in derivatives markets, where traders continue to hold US$1.7 billion in call options at the US$80,000 strike, signaling expectations of a rebound once policy and regulatory clouds lift.
Industry voices remain divided. Caroline Mauron of Orbit Markets warned that if the Fed refrains from hiking, turmoil could spread across asset classes, suggesting Bitcoin’s weakness may be part of a broader repricing.
Others argue that inflation fears could revive Bitcoin’s appeal as a hedge against currency debasement, though volatility in bond yields may drag prices lower before any recovery takes hold.
For now, Bitcoin’s trajectory hinges on two unresolved questions whether the Fed presses ahead with tightening, and whether U.S. lawmakers can deliver regulatory clarity.
In the absence of answers, the cryptocurrency remains caught between short term headwinds and longer-term hopes of resilience.
