Coins Rose Even Amid Fed Rate Hike…Reason Market Rebounded After Clarity Act Failed

▲ Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE)/AI generated image ©

The cryptocurrency market rebounded even with the first interest rate hike in the U.S., recovering a market capitalization of $2.59 trillion. After the failure of the U.S. cryptocurrency market structure bill, the Clarity Act, in the Senate vote, expectations that the existing regulatory framework would be maintained came to the forefront, coupled with positive news for certain altcoins, leading to a 0.77% rise over a 24-hour period.

According to CoinMarketCap, a cryptocurrency market data aggregator, on September 16 (local time), the total market capitalization of the cryptocurrency market rose by 0.77% over the past 24 hours, reaching $2.59 trillion. While the market shows a -40% correlation with the S&P 500 and is affected by interest rates, cryptocurrencies are showing a different trend from the stock market as regulatory uncertainties have somewhat eased.

The failure of the Clarity Act in the Senate vote was cited as the key reason for the rebound. The bill failed to advance in the Senate on September 15 with a vote of 49 to 50. The market positively interpreted the bill's failure as reducing short-term uncertainty from the introduction of new regulations and maintaining the existing framework of the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC). This means that the regulatory burden has been eased for 16 major assets already classified as non-security digital commodities, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).

Positive news from individual ecosystems also supported investor sentiment. Circle launched Arc, an institutional blockchain with major validators such as BlackRock and Visa participating. Zcash (ZEC) surged by 18% after its community overwhelmingly approved Network Upgrade 7 (NU7). While the overall market's upside was limited, selective buying flowed into altcoins with clear positive news, as this upgrade aims to triple transaction processing speed.

Analysis suggests that the short-term market direction depends on Bitcoin's support level and the Fed's subsequent messages. The total cryptocurrency market capitalization is currently testing its 7-day Simple Moving Average (SMA) of approximately $2.62 trillion. If it stably breaks above this, upward momentum could strengthen, but failure could lead to a retest of the 30-day SMA, approximately $2.53 trillion, which coincides with the 38.2% Fibonacci retracement level.

Bitcoin's key support range has been identified as $72,000-$74,000. Maintaining this price range could solidify the recent market rebound, but a break below it could increase the possibility of further correction. The market is also focusing on the Fed's future tightening stance, which initiated its first interest rate hike since 2023, and the digital asset regulations that the SEC and CFTC will introduce using their existing authorities.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*