Bitcoin Soars as Fed Signals End to Tightening Cycle

The Bitcoin US Dollar price rose by 1.7% to $77,960 today, driven by a combination of factors.

A less-hawkish-than-expected Federal Reserve policy update saw the committee unanimously raise the federal funds rate by 25 basis points to a range of 3.75%-4.00%, but also signaled that further tightening would be limited with a median rate projection of 4.1% through both end-2026 and end-2027.

This dovish undertone weighed on the US dollar, which historically benefits Bitcoin as an alternative store of value, and crypto futures open interest climbed notably in the wake of the Fed decision, suggesting traders were adding fresh exposure rather than simply covering short positions.

The Federal Reserve's move also coincided with a significant legislative milestone for Bitcoin in Washington, where the House Financial Services Committee passed the American Reserve Modernization Act of 2026 in a 28-21 vote. The bill would give the US government's Strategic Bitcoin Reserve formal legal standing and require the Treasury to hold its forfeited Bitcoin for a minimum of 20 years.

The House Ways and Means Committee also approved the first-ever federal cryptocurrency tax framework by a wide margin, reinforcing the view that Washington is moving toward greater institutional legitimacy for digital assets. Despite equities being largely directionless, with the S&P 500 nearly flat and the NASDAQ posting only a marginal gain, Bitcoin's move today was driven by crypto-specific catalysts rather than a general risk-on surge.