Bitcoin absorbs Fed rate hike as officials see more tightening

Bitcoin held near $76,000 after the US Federal Reserve raised its policy rate by 25 basis points to a 3.75%–4% target range, the Fed's first hike since 2023. Despite the move, which was unanimous at the FOMC, markets showed muted immediate price reaction while most officials signaled further tightening may be likely this year.

By AI NewsroomPublished 27 minutes agoUpdated 27 minutes ago0 views

Bitcoin absorbs Fed rate hike as officials see more tightening

Why It Matters

The Fed's decision and its guidance on additional tightening shape the macro backdrop for risk assets, and crypto markets' initial calm could be tested if officials follow through with more rate increases. Observed shifts between spot buying and derivatives selling indicate active repositioning that could influence short-term price dynamics.

Key Facts

Fed rate move: 25 basis points to a 3.75%–4% target range (unanimous FOMC vote)
FOMC participants expecting further hikes: 16 out of 18 officials see at least one more rate increase this year
Bitcoin price: $76,663 at time of writing; up 1.35% over 24 hours
Derivatives flows: Perpetual futures net selling led by ~$82 million in Bitcoin and ~$68 million in Ether over the past hour
Spot flows: Approximately $15.5 million of net spot Bitcoin buying

Bitcoin's price showed little immediate reaction to the Federal Reserve's decision to raise its benchmark interest rate by 25 basis points, holding around pre-announcement levels near $76,000. The Federal Open Market Committee voted unanimously to lift the target range to 3.75%–4% in a move aimed at addressing persistent inflation. At the time of reporting, Bitcoin was trading at about $76,663, up 1.35% over the previous 24 hours.

Market participants noted the outcome was largely anticipated by crypto markets. Cooper Duschang, a research analyst at Talos, said the muted price response suggested expectations were priced in and that Bitcoin remained resilient even as equities slipped on the day. During the FOMC press conference, Fed Chair Kevin Warsh—quoted in the source—said inflation remained too high while the US economy appeared to be strengthening.

While spot Bitcoin prices were steady, trading data showed active repositioning across markets. Duschang reported a shift toward net selling in perpetual futures, driven by roughly $82 million of Bitcoin and $68 million of Ether sold over a recent hour, while spot markets saw about $15.5 million in net Bitcoin buying. He also flagged sizable exchange flows, with roughly 2,170 Bitcoin deposited to exchanges after the rate announcement and about 1,260 withdrawn later.

Analysts cautioned that the market's resilience could be challenged if the Fed follows through with further tightening. The Fed's updated projections indicated 16 of 18 FOMC participants expect at least one more rate increase before year-end, a stance Andrew Melville of Block Scholes called a potentially more hawkish surprise should it materialize. Martin Lee of DWF Labs described the Fed's 'higher for longer' messaging as likely to prompt repricing of risk-on assets, underscoring the uncertain path for crypto if tightening continues.