Bitcoin Defies Expectations with $81K Rally After Fed Rate Hike
Bitcoin's rally to $81,610 after the Fed's September rate hike is unexpected, given traditional market logic. The token remains above its starting point for the week despite five pieces of bad news: the CLARITY Act failed in the Senate, the Federal Reserve raised interest rates by 25 bps, the Bank of Japan hiked rates, the dollar index crossed back above 100, and oil prices rose. Futures markets had priced a 93% chance of the rate hike before the decision.
Spot and ETF trading volume fell nearly 40% during Bitcoin's relief bounce, signaling muted participation and liquidity risk despite short-term price gains. This development is contradictory for crypto markets because higher rates typically boost the dollar and tighten liquidity, making it harder for risk assets to appreciate.