Bitcoin's price fell below $76,000 on September 14, erasing Monday's gains and reaching its lowest level since August 21. The decline came as traders braced for a Federal Reserve rate decision scheduled for September 16, with a quarter-percentage-point hike widely expected.
The cryptocurrency had climbed to a session high of $79,579 earlier that day before losing momentum and breaking through the $77,000 support level it had maintained for nearly three weeks. By late afternoon, bitcoin fell to a daily low of $75,560 and remained below $76,000, down 3.5% over 24 hours.
The market reversal coincided with a deadlock in Senate negotiations over the CLARITY Act, a cryptocurrency regulation bill. Market sentiment deteriorated sharply, with the Crypto Fear and Greed Index dropping from 81 on August 21 to 67 by September 15.
Liquidations and Leverage Impact
The sharp price decline triggered significant liquidations among leveraged traders. Bitcoin's volatility wiped out more than $98 million in long bets and approximately $45 million in short positions. Across the broader cryptocurrency market, nearly $300 million in long positions were liquidated compared with $190 million in shorts.
Fed Decision Outlook
Industry observers expressed mixed views on the immediate impact of the Fed's expected rate hike. Vik Sharma, CEO of Cake Wallet, noted that higher interest rates typically squeeze corporate profits and affect equities but argued that bitcoin's thesis remains independent of central bank policy.
"Bitcoin has no earnings to miss and no central bank controlling its supply," Sharma said. "A Fed hike should change the outlook for equities, not the long-term case for Bitcoin."
Lea Thompson, marketing manager at Cake Wallet, characterized the Fed decision as primarily significant for the broader macroeconomic environment, suggesting the focus should be on how the announcement reshapes expectations for real yields, dollar strength, and liquidity conditions rather than bitcoin's immediate price reaction.
