Bitcoin Cleared $85,000 a Week After the CLARITY Act Died and the Fed Hiked. How High Can It Go?
Bitcoin shrugged off a Senate rejection and a Fed rate hike to close above a key technical level for the first time in nearly a year, and now analysts are mapping out exactly what it needs to keep climbing.
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The Bitcoin (CRYPTO:BTC) price hovers at $86,291 after surging about 14% from its September 15 close of $75,584, the day the Senate voted down the CLARITY Act.
Just a day later, the Federal Reserve raised interest rates, but rather than ending Bitcoin’s rally, these events marked a low point that Bitcoin quickly recovered from, closing above its 50-week moving average for the first time in nearly a year. So, how high can the Bitcoin price go from here?
The Senate Vote and the Fed Hike Failed to Break the Bitcoin Rally
On September 15, the Senate rejected the CLARITY Act, 49 to 50, with every Democrat and four Republicans opposed. This crucial step killed the bill for the year, as it required 60 votes to advance. The following day, the Fed raised its target interest rate by a quarter percentage point, marking the first increase since 2023.
The Fed’s updates suggested a cautious outlook, with projections indicating one or two more hikes by year-end. Chair Kevin Warsh notably opted out of submitting his rate forecast, stating, “I’m not in the forward guidance business.”
Despite this, Bitcoin closed the week at $81,160 on September 20, up from $78,175 on September 14. Jesse Marre, a senior portfolio manager at Hilbert Group, suggested the vote and rate hike were already anticipated, which is why Bitcoin dipped below $75,000 before bouncing back.
Just two days following the vote, the SEC released its Innovation Exemption, and the CFTC sent a proposed rule to the White House for review. Gadi Chait from Xapo Bank interprets these actions as regulators continuing to move forward without congressional approval, while Marre warns that future administrations can more easily reverse rules than laws.
$75,000 Held on Every Close, and $1 Billion Inflows Followed
The $75,000 support level was tested but held at the end of each trading day. Bitcoin dipped to $74,888 on September 15 and $74,912 on September 16, but closed at $75,584 and $76,145. This shows buyer confidence, as they stepped in to push Bitcoin above $75,000.
Marre had identified $75,000 as strong support, with $83,000 and $85,000 as key resistance levels where selling pressure often surfaces. Notably, both resistance levels were surpassed, with Bitcoin reaching a high of $87,397 on September 21. That same day, U.S. spot Bitcoin ETFs attracted a massive $999 million—the highest one-day inflow since October 2025.
This strong inflow reversed a challenging week for funds, which had seen outflows of $450 million and $296 million on September 15 and 16, respectively. After inflows of $159 million and $433 million in the following days, the total net inflow for the week reached only $6 million. Notably, institutions like BlackRock’s IBIT, ARK’s ARKB, and Fidelity’s FBTC were major contributors to this inflow.
Marre views this strong follow-through as the start of a new bull market, while Chait emphasizes that reclaiming the 50-week average, as confirmed on September 20, marks a significant shift in trend. These funds now hold around 6.3% of all Bitcoin, meaning a collective buy from them can significantly impact the price beyond the influence of any individual trader.
The Yield Relief Only Lasted One Session
Marre suggests that Treasury market moves have had a larger effect on Bitcoin than the Fed’s moves. According to him, the slight drop in 10-year yields offered a moment of relief, since rising yields can hurt Bitcoin by making bonds more attractive by comparison, as Bitcoin doesn’t pay interest. The yield rose to as high as 5.01% during the week but dropped to 4.94% on September 17, only to rebound again.
However, this moment of relief didn’t last, as the yield returned to 5.01% shortly after, its highest level in a year. The narrow gap between the 10-year and 2-year yields stood at just 0.20%, suggesting investors are bracing for slower future growth.
Overall, while the bond market has shown volatility, the recent surge in Bitcoin suggests a growing confidence in its value, despite the challenges it faces. As Bitcoin continues to navigate these turbulent waters, many are left wondering just how high it can rise if the momentum builds further.
How High Can the Bitcoin Price Go From $85,000?
Analyst Marre is eyeing the $95,000 to $100,000 range, which is about 10% to 16% above the current price. Bitcoin could reach this level if two key factors continue: consistent inflows from ETFs, as seen since September 17, and maintaining closes above its 50-week moving average that it reclaimed on September 20. The previous record of $126,198, set on October 6, 2025, still sits 46% above the current level, indicating that even if Bitcoin reaches six figures, it would still be 20% below its all-time high.
However, this rally relies on a factor that hasn’t proven itself yet. The near-term focus will be the meeting between Trump and Xi on September 24. A daily close below $75,000, which has held as a significant support level twice, would be a warning sign. Moreover, if the 10-year interest rate surpasses 5.01% before then, a Bitcoin price that recently climbed 14% in a week thanks to buying pressure could see a pullback before reaching $95,000.
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Sam Daodu is a crypto analyst and the editor of 24/7 Wall St.'s Crypto Desk, where he covers Bitcoin, XRP, Ethereum, Solana and the altcoins investors search for most. His work focuses on price levels, spot ETF flows, on-chain data and the regulatory decisions that move crypto markets, written so a first-time buyer and a seasoned trader can both use it.
Sam has written about crypto professionally since 2019 and has published more than 2,000 articles. Before joining 24/7 Wall St., he wrote for crypto media outlets and Web3 companies and ghostwrote for crypto founders and token launches. His analysis is syndicated on Yahoo Finance, MSN and AOL and has been cited by other crypto news sites. He also founded MacLabs Marketing, a content and personal branding agency for crypto founders and executives.
When he isn't reading charts, Sam is usually at the gym or watching One Piece, a series he maintains has better tokenomics than most altcoins.
