Bitcoin Rises Despite Fed Hike Amid Regulatory Uncertainty

Bitcoin rose after the Federal Reserve raised interest rates to 3.75% - 4.00%, despite expectations of a hike, as traders focused on future Fed policy and crypto regulation.

The rate increase was widely anticipated, with markets assigning a 92.7% probability to a quarter-point hike before the decision. The actual announcement triggered a brief drop in Bitcoin price to $75,350, but it quickly rebounded above $76,100 after the announcement.

The bigger question was whether Fed Chair Kevin Warsh would signal a longer tightening cycle, but the immediate decision itself was not a surprise. Instead, traders are now looking ahead to upcoming inflation and economic data, as well as signals from the Fed about its next move.