Bitcoin Resilient as Fed Raises Rates for First Time in Two Years

The US Federal Reserve raised its benchmark interest rate for the first time since 2023 by 25 basis points to a target range of 3.75% to 4%. The move, which was widely anticipated, did not significantly impact Bitcoin's price, with it holding near $76,000 on Wednesday.

According to Cooper Duschang, research analyst at Talos, the initial reaction suggests that crypto markets had already priced in the Fed's decision. Bitcoin showed little immediate reaction to the announcement and was trading at $76,663 at the time of writing, up 1.35% in 24 hours.

While US stocks slipped on Wednesday, Bitcoin's price resilience came despite this. Crypto analysts said that this resilience could be tested again if the Fed raises rates further this year.

During the FOMC press conference, Fed Chair Kevin Warsh noted that inflation remains too high while the US economy looks to be strengthening. The Fed's updated economic projections show a majority of officials see at least one more rate hike before the end of the year.