Bitcoin Price Takes Hit from Hawkish Fed Rate Hike

The recent Federal Reserve interest rate increase has placed pressure on Bitcoin's price. The Fed raised rates by 25 basis points, setting the federal funds target range at 3.75%-4.00%, and emphasized its focus on elevated inflation and price stability.

Crypto analyst Ali Charts notes that a specific on-chain level for Bitcoin is worth monitoring: the short-term holder realized price near $71,200. This represents the cost basis associated with newer Bitcoin holders, and could provide insight into demand during a market decline.

The broader market has also been affected by the rate increase, with significant losses across various financial assets, including the S&P 500, Nasdaq, gold, silver, and Bitcoin itself.