Bitcoin Defies Interest Rate Hike with Unexpected Price Surge
The Federal Reserve raised its benchmark interest rate by 25 basis points to a range of 3.75 percent-4.00 percent in its September 15-16 FOMC meeting, marking its first interest rate hike since 2023.
Despite the increase, Bitcoin's price actually rose from around $75,400 before the announcement to $76,000 after the decision was released on Thursday, September 17.
Aloysia Dian, Chief Marketing Officer of INDODAX, attributed this response to the complex interplay between macroeconomic policies and crypto market dynamics.
She explained that interest rate policy remains an important factor but not the only driver of the crypto market, which is also influenced by previously formed expectations, capital flows, sentiment, and specific developments in the crypto industry.
The Fed's decision was widely anticipated, with some pressure already reflected in price movements before the announcement. As a result, the decision did not produce additional negative reactions to risky assets like Bitcoin.