Bitcoin absorbs Fed rate hike as officials see more tightening
Bitcoin showed little immediate reaction to the Fed’s first rate increase since 2023, but 16 of 18 officials expect at least one more hike before the end of the year.
Bitcoin showed little immediate reaction to the Fed’s first rate increase since 2023, but 16 of 18 officials expect at least one more hike before the end of the year.
Bitcoin held near its pre-Fed announcement levels of around $76,000 on Wednesday despite the US Federal Reserve raising its benchmark interest rate for the first time since 2023 to address persistently high inflation.
The Fed’s Federal Open Market Committee on Wednesday voted unanimously to raise rates by 25 basis points to a target range of 3.75% to 4%, a move that typically puts pressure on stocks and other risk assets. However, Bitcoin showed little immediate reaction to the announcement and was trading at $76,663 at the time of writing, up 1.35% in 24 hours.
Andrew Melville, head of research at Block Scholes, said another increase in rates would be a “more hawkish surprise than today’s 25bp hike.”