The U.S. crypto market absorbed two major developments out of Washington within 24 hours: the Federal Reserve's first interest rate hike since 2023, and a congressional committee vote that could permanently enshrine the federal Strategic Bitcoin Reserve into law.
Federal Reserve Raises Rates, Bitcoin Holds Above $75,000
On September 16, the Federal Open Market Committee voted to raise the federal funds rate by 25 basis points to a target range of 3.75%–4.00%. Fed Chair Kevin Warsh reiterated that inflation remains above target, and 12 of 18 policymakers projected at least one more hike before year-end, with the median forecast placing the federal funds rate at 4.1% by December.
Bitcoin (BTC) initially slipped toward $75,000 in the minutes after the announcement before recovering to trade around $76,000–$76,500. U.S. spot Bitcoin and Ethereum ETFs recorded roughly $520 million in combined net outflows on September 16, with BlackRock's IBIT and ETHA funds accounting for nearly half of that total. Despite the outflows, cumulative net inflows into U.S. spot Bitcoin ETFs have stayed positive at more than $54 billion since launch.
Ethereum (ETH) held inside its recent consolidation range near $2,440, with $2,500 still standing as the key resistance level traders are watching for a breakout toward $3,000.
Congress Advances Bill to Lock In a Federal Bitcoin Reserve
Separately, the House Financial Services Committee voted 28–21 on September 16 to advance H.R. 8957, the American Reserve Modernization Act of 2026 (ARMA), sending the bill to the full House for further consideration.
Introduced by Rep. Nick Begich (R-Alaska), with Rep. Jared Golden (D-Maine) as Democratic co-lead, the legislation would codify into federal law the Strategic Bitcoin Reserve that President Trump established by executive order in March 2025. Under the committee-approved version, Bitcoin obtained through federal forfeiture would be held by the Treasury for a minimum of 20 years, with no sales, swaps, or trades permitted during that period.
The bill also directs Treasury to publish proof-of-reserve reports — now required annually rather than quarterly, following a chairman-backed amendment adopted before the vote — verified by independent third-party auditors under the oversight of the Comptroller General. It further authorizes a study into budget-neutral ways to expand the reserve without new taxes, borrowing, or deficit spending, and would let individual states store their own Bitcoin holdings in segregated Treasury accounts.
Estimates of the reserve's current size vary between roughly 198,000 and 328,372 BTC, depending on which forfeiture wallets analysts attribute to federal agencies — underscoring why the bill's reporting requirements matter. ARMA still needs approval from the full House and an identical Senate bill before it could reach the president's desk; no floor vote date has been scheduled yet.
What Comes Next
Together, the two developments capture the split personality of the current market: tighter monetary policy is pressuring short-term price action and pulling money out of spot ETFs, while lawmakers continue building a longer-term legal framework around Bitcoin. Traders will be watching whether Bitcoin can reclaim the $77,000–$78,000 zone in the coming sessions, even as the reserve bill works its way toward a full House vote.
