On the Chain: Bitcoin holds above US$76,000 as crypto shrugs off Fed rate rise

Bitcoin held above US$76,000 on Friday morning as cryptocurrency markets absorbed the US Federal Reserve’s first interest rate increase since 2023, with traders taking some comfort from signals that an aggressive tightening cycle may not follow.

Bitcoin was changing hands at about US$76,300, little changed in recent trade, while Ethereum gained around 0.9% to US$2,438 and Solana advanced more than 2% to around US$101. XRP eased slightly to US$1.29.

The relatively muted response followed a quarter-point increase from the Fed, which lifted its target range to 3.75%-4.00%.

While higher rates would typically present a headwind for speculative assets such as cryptocurrencies, the move had been widely anticipated and the Fed’s projections suggested only one further quarter-point increase this year.

Bitcoin subsequently gained around 0.9% over 24 hours to US$76,621 during Thursday's US session as equities also rallied. The Nasdaq finished 1.7% higher and the S&P 500 added 1.15%, while US Treasury yields retreated.

Zcash steals the spotlight

The standout mover was privacy-focused cryptocurrency Zcash, which surged around 23% to roughly US$1,369.

The rally followed comments from Paradigm co-founder Matt Huang, who disclosed that the crypto investment firm owns Zcash and discussed its potential role as a privacy-focused complement to Bitcoin.