Bitcoin Resilient as Fed Raises Rate, Spot Demand Absorbs Selling Pressure

The Federal Reserve's decision to raise its benchmark interest rate by 0.25 percentage point has had a relatively muted impact on Bitcoin, which held above $76,000 despite higher rates typically weighing on risk assets.

According to the Fed, the benchmark rate was raised from 3.5% to 3.75%-4.00%, marking its first increase in three years. This decision may have already been priced into crypto markets, as suggested by analyst Cooper Douchant of Talos Research.

During the hour after the rate decision, Bitcoin saw about $82 million of net selling in perpetual futures, while Ether recorded about $68 million of net selling. However, roughly $15.5 million of net buying flowed into the Bitcoin spot market, indicating that spot demand absorbed part of the selling pressure from derivatives.

The Fed's signal that additional rate increases remain possible later this year could test Bitcoin's resilience again. Analysts Andrew Melville and Martin Lee both noted that another rate increase, if realized, could be taken by markets as a more hawkish shock than this 0.25-percentage-point move.