Why Bitcoin Just EXPLODED

Because last week, the Senate held its cloture vote on the Clarity Act and it failed 49 to 50, 10 votes short of the 60 it needed.

That was two years of lobbying with piles of money behind it, a House bill that had already passed, and Clarity didn't even get permission to open the debate.

Crypto was heading back to enforcement roulette with the regulatory agencies back in charge and the legislative window was closing ahead of the midterms.

Coinbase stock fell around 8% that day and Circle fell about 10%.

Then, the very next day, the Federal Reserve entered the chat with a unanimous 25 basis point rate hike under new chair Kevin Walsh, the first hike since 2023.

The 10-year Treasury yield had already spiked above 5% and the Bank of Japan hiked up to a 31-year high in the same window.

This was the exact macro setup that every bear case had been built around.

And on top of all that, the AI trade was taking a beating too.

On the 12th of September, Anthropix's Dario Amadei published an essay arguing the industry was moving faster than its own safety work could handle.

And within hours, Sam Altman and Elon Musk had both publicly agreed with him, with Altman then confirming OpenAI would not be going public this year.

By Monday, the semiconductor index had dropped over 5%, its worst session since July.

Nvidia and ASML were down hard, and SoftBank fell almost 11%.

So, consider all of that mixed together from crypto's perspective.

Clarity's failure, liquidity tightening, and the risk trade that had been carrying the entire market starting to look weak.

If somebody had told you in advance that all three of those would land inside one week, well, nobody's answer for where Bitcoin would be trading one week later would be $87,000.

The bears got absolutely everything they asked for, but apparently it wasn't enough.