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Learn moreThe price of Bitcoin (CRYPTO: $BTC) and other cryptocurrencies strengthened heading into the weekend after a volatile week dominated by an interest rate hike from the U.S. Federal Reserve
On the afternoon of Sept. 18, Bitcoin was up 6% and trading at $80,850 U.S. The largest cryptocurrency had been trading near $75,000 U.S. on the eve of the U.S. interest rate decision on Sept. 16. Other digital assets were gaining strength at week's end, with Ethereum (CRYPTO: $ETH) also up 6% and Solana's (CRYPTO: $SOL) price rising 11%.
It's proving to be a quick recovery for digital assets after the U.S. central bank raised its trendsetting Fed Funds Rate by 25 basis points, its first hike in three years. Crypto appears to be staging a relief rally as the market welcomes slightly higher interest rates that are used to dampen inflation.
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Also giving a lift to crypto heading into the weekend are declining crude oil prices. After trading nearing $110 U.S. a barrel, Brent crude oil, the international benchmark, was trading at $103.80 U.S. a barrel on Sept. 18. Many analysts say that Bitcoin's price needs to rise above resistance at $80,000 U.S. in order for it to stage a lasting recovery and continue marching higher.
Here's what else happened in the crypto sector over the past week…
Clarity Act Fails In U.S. Senate: The big news was that the "Clarity Act" legislation failed to pass a critical vote in the U.S. Senate. The legislation received 50 votes for and 49 votes against, which was below the minimum 60 votes needed to advance the Clarity Act and move it closer to becoming law. The Clarity Act would provide a regulatory roadmap for digital assets such as Bitcoin and is viewed as important to the future development of the crypto sector. Stocks of leading crypto firms plunged as much as 10% after the bill failed to advance.
Strategy Leaves Bitcoin Holdings Unchanged: Strategy (NASDAQ: $MSTR) again left its Bitcoin holdings unchanged as it focuses on repurchasing its preferred stock (NASDAQ: $STRC). The serial cryptocurrency acquirer bought back 1.42 million of its preferred shares at a cost of $139.3 million U.S. Strategy did not buy or sell any Bitcoin, leaving its holdings unchanged at 845,050 BTC, worth $65.7 billion U.S., for a second straight week.
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