Bitcoin Rebounds to $76,305 After Sharp Drop Amid Fed Rate Hike
The cryptocurrency market has shown resilience in the face of a highly volatile Federal Reserve session, where interest rates were raised by 25 basis points to 3.75-4.00%. Bitcoin plummeted to $75,351 but recovered some losses to trade above $76,305, representing a 0.55% gain over the past 24 hours and a 2.53% decline over the week.
Rajagopal Menon, Vice President of WazirX, noted that the rate hike may shift the focus for crypto investors and put short-term pressure on liquidity-sensitive assets like Bitcoin. However, he emphasized that the market reaction will depend on where short-term interest rates are headed.
US spot Bitcoin ETFs recorded $450.3 million in net outflows, their largest daily exit since June 25, while Ethereum ETFs saw $141 million in outflows led by BlackRock's ETHA. Analysts believe that crypto markets have entered a recovery phase but the broader technical structure remains cautious.
Vikram Subburaj, CEO of Giottus, suggested using staggered allocations until Bitcoin sustains a close above $76,700 and keeping leverage low, as a break below $75,000 could expose the $71,300-$72,000 support zone.