SKN | Bitcoin and Ethereum Rise as Crypto Markets Look Beyond CLARITY Act Setback

Key Points:

• Bitcoin rose to $77,991.09 by 7:25 a.m. ET on September 18 after opening at $76,350.68, extending its recovery from the post-CLARITY selloff.
• Ethereum climbed to $2,501.16 after opening at $2,445.49, with the second-largest cryptocurrency gaining more than 2% from its opening level.
• Markets are shifting attention toward monetary policy, inflation conditions and alternative regulatory pathways after the CLARITY Act failed to advance in the Senate.

Bitcoin and Ethereum moved higher Friday as cryptocurrency markets appeared to absorb the recent Senate setback for the CLARITY Act and refocus on broader macroeconomic conditions. Bitcoin opened at $76,350.68 and rose to $77,991.09 by 7:25 a.m. ET, while Ethereum opened at $2,445.49 before advancing to $2,501.16.

Bitcoin Rebounds From Regulatory Shock

Bitcoin’s Friday opening was 0.3% higher than Thursday’s opening price, but the intraday move was considerably stronger. From the $76,350.68 open to $77,991.09, BTC gained approximately 2.1%, showing that selling pressure following the CLARITY Act’s Senate failure had not prevented buyers from returning to the market.

The contrast with earlier in the week is significant. The Senate’s failure to advance the legislation on September 15 triggered a sharp crypto-market reaction, with Bitcoin falling below $75,000 and substantial leveraged positions being liquidated. Spot Bitcoin and Ethereum ETFs also recorded combined outflows of approximately $592 million that day, illustrating the initial institutional response to the regulatory setback.

Ethereum Shows Stronger Short-Term Momentum

Ethereum displayed a similar recovery but started from a stronger opening position. ETH opened at $2,445.49, representing a 1.2% increase from Thursday’s opening price, before reaching $2,501.16. The move placed ETH back above the $2,500 threshold as traders reassessed the consequences of the failed legislation.

Ethereum’s performance remains particularly sensitive to regulatory developments because the unresolved U.S. framework affects areas including staking, decentralized finance and the classification of digital assets. The CLARITY Act was intended to establish clearer responsibilities between the SEC and CFTC, but its failure leaves those questions under the existing regulatory structure for now.

Macro Conditions Become the Next Market Driver

The crypto rebound is occurring alongside a significant change in U.S. monetary policy. The Federal Reserve raised its benchmark interest-rate range by 25 basis points to 3.75%–4%, its first increase in three years. While higher rates can tighten financial conditions, the decision did not produce another sustained crypto selloff, suggesting that investors had already incorporated much of the expected policy adjustment into prices.

Inflation expectations have also received some relief from developments in energy markets. The restoration of Saudi Arabia’s East-West pipeline has helped ease concerns surrounding oil-market disruptions, according to the Yahoo Finance report. For crypto markets, lower perceived inflation pressure could influence expectations for future monetary policy and broader risk appetite.

Regulatory Path Remains Open

The failure of CLARITY does not eliminate the possibility of further U.S. crypto-policy developments. Coinbase CEO Brian Armstrong has argued that regulators, particularly the SEC and CFTC, can provide another route toward greater regulatory clarity even without congressional legislation.

For investors, the distinction between legislative progress and regulatory action will remain important. A comprehensive market-structure law would provide statutory certainty, while agency-level rules can change the operating environment more incrementally. The next phase of the market will therefore depend on whether Bitcoin and Ethereum can maintain their recovery while ETF flows, interest rates, oil prices and U.S. regulatory developments evolve.

Bitcoin’s move toward $78,000 and Ethereum’s return above $2,500 indicate that the immediate market reaction to the CLARITY setback has moderated, but neither development resolves the underlying uncertainty. Investors will be watching whether institutional flows return consistently, whether macroeconomic pressure eases and whether regulators advance digital-asset rules independently of Congress. Sustained price strength would require those factors to remain supportive rather than another short-lived rebound following a volatile week.