Fed Raises Rate by 25 Bps for First Time in 3 Years — Bitcoin Holds $76K

The U.S. Federal Reserve voted unanimously to raise its benchmark interest rate by 25 basis points, lifting the target range to 3.75%–4.00%. The move marks the first rate hike in more than three years, reversing the rate cuts seen in late 2025 and putting the Fed back on a tighter policy path.

Despite the rate hike, Bitcoin’s price continues to trade around $76K. 

Fed Raises Rates to 3.75%-4%

The Federal Open Market Committee voted 12-0 to raise the federal funds rate by 25 basis points. The unanimous decision marks the first Fed rate hike in more than three years.

Inflation remains the main reason behind the Fed’s latest move. U.S. CPI stayed at 3.4% year over year in August, well above the central bank’s 2% target.

Higher energy prices have also added pressure, with geopolitical tensions pushing crude oil prices above $106 per barrel. 

During the post-meeting press conference, Fed Chair Kevin Warsh said that the unanimous rate hike was necessary because recent price data failed to satisfy the central bank’s core benchmarks for economic stabilization.

“We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed.”

Fed Signals More Rate Hikes Ahead