Why Is The Crypto Market Up Today?

Key Insights

• The crypto market rebounded after the Federal Reserve delivered a widely expected 25-basis-point rate hike.
• Bitcoin recovered above $76,000 as several major cryptocurrencies moved higher.
• CryptoQuant analyst Crypto Dan said falling Bitcoin UTXOs in loss may reduce the risk of a return to a full bear cycle.

Why is crypto up today? The crypto market moved higher on Sept. 17 after Bitcoin recovered above $76,000 following the Federal Reserve’s latest interest-rate decision.

The Fed raised rates by 25 basis points to 3.75%-4.00%, a move traders had largely anticipated before the announcement. Bitcoin and several major altcoins subsequently stabilized after heavy selling earlier in the week.

Macro Policies Are Fueling The Crypto Market Rally

The crypto market is moving higher even after the Federal Reserve raised interest rates by 25 basis points, bringing the target range to 3.75%-4%. It was the Fed’s first rate hike since 2023, but the move did not lead to a fresh sell-off across crypto.

The main reason is that traders had already expected the decision. Interest rate futures put the chances of a 25-basis-point hike at 92.7% shortly before the Federal Open Market Committee meeting. With the move already priced in, the actual announcement had less room to shock markets.