Bitcoin's price shot above $81,000 on Friday, September 18, defying a week of setbacks for the cryptocurrency industry.

The largest cryptocurrency by market value was recently changing hands at $80,982, after climbing as high as $81,055 at one point Friday morning in New York. Over the past 24 hours, it has gained nearly 6%.

The rally came at the end of a difficult stretch for the sector: on Tuesday, lawmakers blocked the long-awaited Clarity Act, and on Wednesday the Federal Reserve raised interest rates.

JUST IN: Bitcoin surges to $81,000 pic.twitter.com/EQi5apUlxU — Bitcoin Magazine (@BitcoinMagazine) September 18, 2026

Digital asset industry leaders had long called for clear rules to regulate the crypto space, and the Clarity Act — which seeks to divide oversight of the market between regulators — was designed to do exactly that. However, the landmark digital asset market structure bill was halted in a procedural vote. With the bill stalled, how oversight of the market would ultimately be divided remains an open question.

The Federal Reserve, meanwhile, increased borrowing costs for the first time, pointing to skyrocketing inflation in the United States. Fed Chair Kevin Warsh said that price stability in the U.S. was the central bank's number one priority.

"The plain fact is that inflation is too high, and has been for too long," Warsh said. "This summer's inflation readings do not tell me that underlying trends have meaningfully improved."

Bitcoin has historically performed well in a low interest rate environment, because that means there is more liquidity available to trade the asset. Tighter monetary conditions, by contrast, can drain liquidity from financial markets — a dynamic that has made Fed decisions closely watched across crypto. While the price initially dipped on news of the Clarity Act's blockage and the Fed's move, it shot up on Friday.

Bitcoin exchange-traded funds listed in the United States have so far this week experienced net negative flows, with investors cashing out nearly $427 million from the vehicles, according to Farside Investors data. The funds trade on traditional exchanges, offering investors exposure to bitcoin without the need to hold the asset directly. Flows turned positive on Thursday, however, with investors putting nearly $160 million into the funds after two consecutive days of outflows.

In a research note published Thursday, asset manager Grayscale said it did not expect bitcoin's price to be hurt by the Fed's decision, because the move reflects a mid-cycle adjustment rather than a cyclical change.

And despite lawmakers blocking the Clarity Act, regulators such as the and Exchange Commission (SEC) are already pushing ahead with pro-crypto rules. How the SEC's rulemaking progresses, and whether momentum for the Clarity Act returns in Congress, are among the market structure developments to watch.

This article first appeared on Bitcoin Magazine and was written by Mathew Di Salvo.