Bitcoin jumped nearly 7% on Monday, Sept. 21, rising more than 6% during the session to trade above $85,000, as buyers returned following a week of political and market uncertainty. The advance came even after the U.S. Senate failed last week to advance the Digital Asset Market Clarity Act, the latest setback for federal crypto legislation, with prices at one point reaching $86,030.

Bitcoin Rebounds After Senate Rejection

The Senate rejected cloture on the Digital Asset Market Clarity Act, commonly known as the CLARITY Act, on Sept. 15 by a 49-50 vote. The motion needed 60 votes to advance, leaving the bill 11 votes short. Cloture is the procedural vote required to end debate and move a bill toward final passage, so the failed tally leaves the measure stalled short of becoming law. The legislation seeks to set clearer rules for digital commodities and divide oversight between federal regulators.

The defeat initially pressured crypto markets and was followed by a sharp selloff around the vote, as Blockonomi reported. Bitcoin subsequently recovered, and recent Blockonomi coverage of Bitcoin ETF inflows noted renewed demand from U.S. spot funds as BTC moved back toward higher price levels.

Clarity Act Stalls Over Ethics Disputes

Lawmakers remain divided over several parts of the market structure bill, with the disputes centering on crypto market rules, ethics provisions, and conflict-of-interest concerns. Democratic lawmakers raised objections about ethics rules and President Donald Trump's family crypto interests, while Republicans also faced internal opposition, leaving the measure short of the votes required to proceed. Until the bill advances, oversight of digital asset trading in the United States remains governed by existing federal arrangements rather than the new market structure framework the legislation proposes.

The rejection came after lawmakers revised the proposal ahead of the vote. The final draft included new ethics language and other changes aimed at addressing concerns raised during negotiations. The Senate could still revisit the measure, as a motion to reconsider remains possible.

ETF Demand Returns as Bitcoin Recovers

Bitcoin's recovery also followed stronger demand for U.S. spot exchange-traded funds. As reported earlier, U.S. spot Bitcoin ETFs added about $592.5 million — nearly $593 million in combined inflows — across Thursday, Sept. 17, and Friday, Sept. 18, reversing part of the heavy outflows recorded earlier in the week. The funds, which began trading in January 2024, hold Bitcoin directly and publish daily flow figures, giving the market a frequent, regularly updated data point on demand through regulated U.S. vehicles.

JUST IN: Bitcoin surges to $86,030 pic.twitter.com/3Z0RvIVvJ3 — Bitcoin Magazine (@BitcoinMagazine) September 21, 2026 (x.com)

The fresh buying gave the Bitcoin price another source of support as the market recovered above $80,000. Analysts closely watch ETF flows because they show how much capital enters or leaves regulated Bitcoin products in the United States.

Fed Rate Hike Adds Another Market Test

The Federal Reserve's interest rate increase also failed to stop the recovery. The central bank raised its policy rate by 25 basis points last week — its first rate increase since 2023, according to earlier Blockonomi coverage — while Bitcoin held near $76,000 shortly after the decision before moving higher in later sessions. Rate decisions are tracked across financial markets because they shape borrowing costs and the broader liquidity environment in which assets like Bitcoin trade.

Bitcoin price now remains above levels seen before the Senate vote. Traders continue to track ETF demand, federal rulemaking, interest rates, and any renewed effort to advance crypto market structure legislation in Washington this week.

Originally published on Blockonomi.