Bitcoin Price Surges Past $81,000 Amid Regulatory and Macro Headwinds

Bitcoin price surges — Bitcoin’s price surged past $81,000 on Friday, rising nearly 6% over 24 hours despite a week marked by a failed crypto bill and a Federal Reserve interest rate hike.

The flagship cryptocurrency reached as high as $81,055 in New York trading, trading recently around $80,982. The move follows Tuesday’s procedural blockage of the Clarity Act, a landmark digital asset market structure bill, and Wednesday’s Fed decision to increase borrowing costs.

Federal Reserve Chair Kevin Warsh cited persistently high inflation as the reason for the hike, stating price stability was the central bank’s top priority. Historically, Bitcoin has performed well in low-rate environments due to increased liquidity.

Despite initial dips on the news, the price rallied strongly. U.S. spot Bitcoin ETFs saw net outflows earlier in the week but recorded a positive inflow of nearly $160 million on Thursday. Analysis from Grayscale suggested the Fed’s move, seen as a mid-cycle adjustment, was unlikely to hurt Bitcoin’s price long-term.