PiCK
Bitcoin Holds Above $76,000 After Fed’s First Rate Increase in Three Years as Spot Buying Provides Support
Summary
- The Fed raised its benchmark rate by 0.25 percentage point, but Bitcoin held the $76,000 level, showing relative resilience.
- After the rate decision, Bitcoin perpetual futures saw heavy net selling, while the spot market recorded $15.5 million in net buying, suggesting spot demand absorbed some of the selling pressure from derivatives.
- The Fed signaled the possibility of additional rate increases this year and a higher-for-longer stance, meaning the resilience of risk assets such as Bitcoin could be tested again.
Forecast Trend Report by Period
Bitcoin held above $76,000 after the Federal Reserve raised its benchmark interest rate for the first time in three years, showing a relatively muted reaction to the decision.
Cointelegraph reported on Sept. 17 that Bitcoin was trading at $76,663 at the time of writing, with little volatility after the Fed announcement. That was up 1.35% from 24 hours earlier.
The Federal Open Market Committee voted unanimously to raise the benchmark rate by 0.25 percentage point to 3.75%-4.00%. While higher rates typically weigh on risk assets such as stocks and cryptocurrencies, Bitcoin stayed near its pre-announcement range immediately after the decision.
Cooper Douchant, an analyst at Talos Research, said the initial reaction suggested the Fed’s move had already been largely priced into crypto markets. Bitcoin remained broadly steady near pre-decision levels even as stocks fell.
Spot and derivatives markets showed diverging moves. In the hour after the rate decision, Bitcoin saw about $82 million of net selling in perpetual futures, while Ether recorded about $68 million of net selling.
By contrast, roughly $15.5 million of net buying flowed into the Bitcoin spot market. That indicates spot demand absorbed part of the selling pressure from derivatives.
Exchange flows also picked up. After the rate increase, about 2,170 BTC flowed onto exchanges, followed by withdrawals of 1,260 BTC. Douchant said the activity pointed to active position adjustments as investors processed the Fed’s message, rather than a uniform move into risk-off positioning.
Still, the Fed’s signal that additional rate increases remain possible later this year could test Bitcoin’s resilience again. Andrew Melville, head of research at Block Scholes, said another rate increase, if realized, could be taken by markets as a more hawkish shock than this 0.25-percentage-point move.
Martin Lee, head of market insights at DWF Labs, also said the Fed’s higher-for-longer hawkish stance could lead to a repricing of risk assets.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.