Bitcoin Holds $76K as Crypto Market Rebounds After Fed

Key Insights

• The crypto market stabilized after the Senate’s CLARITY Act setback and the Federal Reserve’s 25-basis-point rate hike.
• Bitcoin held near $76,000 while several altcoins, led by Zcash and Hyperliquid, posted stronger gains.
• CryptoQuant analyst Crypto Dan said falling Bitcoin UTXOs in loss make a return to a full bear cycle increasingly unlikely.

The crypto market stabilized on Sept. 18 after absorbing two major headwinds from U.S. monetary policy and crypto regulation.

Bitcoin held around $76,000 after briefly trading above $77,000 during the previous session. Several large-cap cryptocurrencies also remained higher, while Zcash and Hyperliquid recorded stronger gains.

The recovery followed the Federal Reserve’s first rate increase since 2023 and the Senate’s failure to advance the CLARITY Act earlier this week.

Crypto Market Stabilizes After Two Major Setbacks

Bitcoin traded around $76,300 during the latest Sept. 18 market snapshot.

Ethereum was near $2,440, while BNB traded around $736 and Solana remained above $100. XRP was comparatively weaker around $1.29.

Zcash continued to outperform, trading near $1,450 after gaining roughly 8% over 24 hours at the latest snapshot. Hyperliquid was also up close to 10%.

The broader market remained positive across many assets, although the latest gains were smaller than some earlier Sept. 17 readings.

Phemex data placed total crypto market capitalization around $2.62 trillion, up approximately 0.84% at its Sept. 18 snapshot.

That means the draft’s nearly 2% market-cap gain appears to reflect an earlier intraday reading rather than the latest available figure.

CLARITY Act Vote Removed Earlier Crypto FOMO

The market’s rebound followed a sharp reversal in sentiment earlier this week.

On Sept. 15, the Senate voted 49-50 against invoking cloture on the motion to proceed to H.R. 3633, the Digital Asset Market Clarity Act.

The procedural vote required 60 votes.

The outcome stalled the legislation but did not constitute final rejection of the bill. Senator Thom Tillis subsequently entered a motion to reconsider, leaving a procedural route for another vote.

Santiment had identified elevated crypto-market FOMO on Sept. 14 as expectations around the Senate vote increased.

That optimism faded rapidly after the cloture vote failed and crypto prices declined.

The shift should not be described as a move into outright market fear, however.

CoinMarketCap’s Fear and Greed Index stood at 64, which remained in the Greed category.

The more precise interpretation is that social-media euphoria cooled while broader market sentiment remained relatively constructive.

Fed Rate Hike Added Another Crypto Headwind

The Federal Reserve added a second macroeconomic pressure point on Sept. 16.

The Federal Open Market Committee unanimously raised its target range by 25 basis points to 3.75%-4.00%.

The 12-0 vote marked the first Fed rate increase since July 2023.

The Fed said inflation remained elevated and that the increase would support a timelier return toward its 2% target.

Chair Kevin Warsh did not commit to another rate increase at the meeting.

However, the policy decision reinforced expectations that monetary conditions could remain restrictive.

Bitcoin nevertheless avoided another major selloff after the announcement and recovered above $76,000.

That reaction suggests much of the expected rate increase had already been incorporated into market positioning.

Crypto Dan Says Bear-Cycle Return Looks Less Likely

CryptoQuant contributor Crypto Dan pointed to Bitcoin’s UTXO data as evidence of improving market structure.

The percentage of Bitcoin UTXOs held at an unrealized loss reportedly fell from roughly 54%-60% toward 27%.

A Bitcoin UTXO is an unspent transaction output.

It is considered to be in loss when the current Bitcoin price falls below the price at which that output last moved.

Crypto Dan said declines of similar magnitude have historically appeared during transitions away from prolonged bearish conditions.

He argued that the latest decline carries enough momentum to reduce the likelihood of Bitcoin returning to a full bear cycle.

However, the indicator does not independently confirm that a new bull market has started.

Historical relationships can break, while macroeconomic conditions, ETF flows and investor positioning can still alter the market structure.

Bitcoin Onchain Structure Improves Despite Headwinds

Crypto Dan also acknowledged the short-term risks facing Bitcoin.

These include the Fed’s tighter monetary stance and the stalled CLARITY Act.

He said those pressures could weigh on sentiment temporarily but argued they were unlikely to reverse the structural changes already visible in onchain data.

Bitcoin’s price response has so far supported that cautious interpretation.

BTC remained above $76,000 despite two major negative catalysts in three days.

Still, that resilience does not confirm a sustained breakout.

Bitcoin remains below the roughly $79,000-$82,000 area that contained much of its earlier September trading.

Binance Stablecoin Inflows Remain Elevated

Another CryptoQuant indicator shows liquidity remaining available on Binance.

Contributor CW8900 said approximately $1.235 billion in stablecoins flowed into Binance on Monday.

That amount exceeded the exchange’s average daily inflow over the previous two months.

Stablecoins deposited on exchanges can represent capital available for trading.

However, inflows do not prove that users will immediately buy Bitcoin or other cryptocurrencies.

CryptoQuant said stablecoin inflows at other exchanges had been declining.

The surge that accompanied Bitcoin’s earlier move from approximately $62,000 toward $80,000 was also beginning to normalize.

Binance and OKX were maintaining comparatively stronger inflow levels, while Coinbase showed a faster decline.

Stablecoin Liquidity Gives Mixed Market Signal

The stablecoin data create a mixed picture.

Strong Binance inflows indicate that some trading liquidity remains positioned on the exchange.

At the same time, weakening aggregate inflows suggest the broader wave of capital that accompanied Bitcoin’s earlier rally has cooled.

CryptoQuant also reported total stablecoin reserves on Binance near $43.4 billion in recent analysis.

That gives traders substantial potential purchasing capacity.

It should not, however, be interpreted as guaranteed demand.

Stablecoins can remain idle, move between platforms or be used for derivatives collateral rather than spot purchases.

Crypto Market Recovery Still Needs Confirmation

The Sept. 18 recovery therefore reflects stabilization rather than confirmation of a new bullish phase.

Bitcoin has absorbed the immediate impact of the CLARITY Act setback and Fed rate increase without revisiting substantially lower levels.

Several altcoins have also recovered faster than BTC.

Onchain data provide additional constructive evidence, particularly the decline in Bitcoin UTXOs held at a loss.

However, Crypto Dan’s conclusion remains an analyst interpretation rather than confirmation that the bearish phase has ended.

The strongest near-term test will be whether Bitcoin can recover the upper part of its recent range while exchange liquidity and broader spot demand remain supportive.

For now, the crypto market has held together despite two substantial macro and regulatory shocks.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Onchain indicators, sentiment data and analyst views do not guarantee future cryptocurrency performance.