Bitcoin Swings Between $75,000 and $76,500 After Fed’s First Rate Increase Since 2023

Bitcoin swung between $75,000 and $76,500 immediately after the Federal Reserve raised its benchmark interest rate for the first time in more than three years.

The Block reported on September 16 that Bitcoin traded near $75,600 after moving within a $75,000 to $76,500 range following the Federal Open Market Committee’s rate decision. Ether also fluctuated between $2,370 and $2,430 before settling around $2,376.

The Fed unanimously raised its benchmark rate by 0.25 percentage point at the FOMC meeting, setting the target range at 3.75% to 4.00%. It was the Fed’s first rate increase since July 2023.

The increase had been largely expected by markets. Just before the decision, CME FedWatch showed a 92% probability of a quarter-point hike.

Fed Chair Kevin Warsh told reporters the U.S. economy was strengthening and financial conditions were not especially restrictive. “It is difficult to characterize broad financial conditions as restrictive,” he said. “We therefore removed some degree of accommodation.”

The Fed also left open the possibility of additional increases. Its economic projections showed that 16 of 18 policy officials expect at least one more 0.25 percentage-point increase this year.

The broader digital-asset market reaction was limited. Most of the top 20 cryptocurrencies by market capitalization were flat or up about 0.5% after the decision. XRP rose about 1.5%, Solana gained about 1%, and Zcash jumped 6.5%.

Louis Hwang, an analyst at Bitget, said the market had already priced in one rate increase, but the Fed’s dot plot made the prospect of further tightening more concrete. He added that inflation pressures tied to energy prices and the Fed’s path for additional rate hikes would be the main variables for the digital-asset market.