Bitcoin Holds Above $76,000 Despite Fed Rate Hike as Market Prices In Move

The U.S. Federal Reserve raised its benchmark interest rate by 25 basis points on the 16th (local time) and left the door open for another hike this year, but Bitcoin held steady around the $76,000 level. The move had been largely priced in ahead of the decision, and crypto investors had already trimmed risk exposure.

As of the 17th, Bitcoin was trading at $76,223, up 0.7% from the previous day, according to CoinMarketCap. The cryptocurrency showed volatility around the Fed's rate announcement but subsequently recovered the $76,000 level with modest gains.

The Fed raised its target range for the federal funds rate to 3.75%–4.00% from 3.50%–3.75% at the FOMC meeting. It marked the first rate increase in three years and two months, since July 2023. The median projection among Fed officials for the benchmark rate stood at 4.1%, implying one additional hike this year. Of the 19 policymakers, 12 saw one more increase as appropriate, four favored two additional hikes, and two argued for holding rates at current levels.

Fed Chair Jerome Powell said at a press conference, "The plain fact is that inflation is too high and has been too high for too long," adding that "the underlying trend has not meaningfully improved" based on summer inflation readings. He did not directly address the possibility of further hikes but left room open, stating, "I don't see current financial conditions as tight."