Bitcoin Rockets Past $85,000, Defying Regulatory Setback and Triggering Mass Liquidations

Bitcoin has stunned markets, surging past $85,000 to hit its highest levels since January 2026, despite the US Senate's recent failure to pass the critical CLARITY Act. This remarkable rally, which saw BTC touch $87,000 on Monday, triggered over $647 million in short position liquidation, forcing traders betting against the digital asset to rapidly cover their positions and adding fuel to the upward momentum. The move is being hailed by some analysts as the first truly significant technical breakout of 2026, marking a decisive shift after months of volatility. This explosive price action follows Bitcoin closing a week above its 50-week moving average for the first time in 45 weeks, a key signal for many traders, and happened even as the Federal Reserve announced its first interest rate hike since 2023. The market's resilience to tighter monetary policy, coupled with the stalled CLARITY Act—a bill designed to bring clear regulatory rules to the crypto space—shows a strong underlying demand. While Bitcoin leads the charge, altcoins like NEAR Protocol are also seeing significant gains, with NEAR surging over 11% and triggering its own wave of short liquidation. Looking ahead, the crucial test for Bitcoin will be if it can hold above the $85,000 level into the weekly close on September 27. Analysts are watching for further resistance around $87,000 and the 2025 closing price, with some forecasts still eyeing a potential push towards $90,000 and even $100,000 by early 2027. The long-term impact of the CLARITY Act failure remains a concern for institutional adoption, but for now, Bitcoin astonishing move suggests the bulls are firmly back in control.