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 who's spent nearly a decade making blockchain understandable—no easy task when most whitepapers read like fever dreams. He writes for 24/7 Wall St., covering Bitcoin, altcoins, and crypto market analysis for investors. Before crypto, he was a tech writer (back when explaining "the cloud" was peak innovation). Since 2018, he's written for CoinTelegraph, Yahoo Finance, The Block, Cryptonews, Zypto, Rain, and more—basically anywhere people want crypto news without the headache. Sam runs MacLabs Marketing, a content agency for crypto brands tired of sounding like AI wrote their website. He also publishes free crypto education on his site for Web3 enthusiasts who think "gas fees" is a typo. When he's not writing or staring at charts, Sam's either: - Watching anime (currently convinced One Piece has better tokenomics than most altcoins) - At the gym sculpting himself into a Greek god - Listening to the music your mum warned you only bad boys listen to Connect: LinkedIn | Email | MacLabs Marketing
