Bitcoin trades near $76K as US stocks rebound from Fed's first rate hike since 2023

The Federal Reserve just reminded everyone that rate hikes aren't ancient history. On September 16, the FOMC unanimously voted to raise the benchmark federal funds rate by 25 basis points, pushing the target range to 3.75%-4%. It's the first increase since July 2023, ending a stretch where markets had grown comfortable with the idea that tightening was over.

Bitcoin's response? A collective shrug. The largest cryptocurrency by market cap settled into a range between $76,000 and $76,800 in the hours following the announcement, posting modest daily gains while traditional markets recalibrated. By September 17, US equities joined the party, with the S&P 500, Nasdaq, and Dow all rebounding as falling oil prices helped investors digest the Fed's hawkish posture.

Fed Chair Kevin Warsh didn't mince words. He described current inflation levels as "unacceptable" and stressed the need to recalibrate financial conditions to get back to the central bank's 2% target.

The median dot plot suggests one more potential 25 basis point hike before year-end. That means the committee isn't viewing this as a one-and-done move.

Bitcoin held firm near $76,000, supported by consistent spot demand even as futures markets showed some initial selling pressure. While equities sold off immediately after the announcement before recovering the next day, Bitcoin barely moved.