Bitcoin Stalls as Federal Reserve Hikes Interest Rate

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%. Bitcoin's price remained relatively stable, trading at $76,663 at the time of writing, up 1.35% in 24 hours.

According to Cooper Duschang, research analyst at Talos, the Fed's decision was largely anticipated by crypto markets. Bitcoin has shown resilience, holding broadly around pre-announcement levels even as equities moved lower.

The Fed's updated economic projections show a majority of officials see at least one more rate hike before the end of the year. Andrew Melville, head of research at Block Scholes, said another increase in rates would be a 'more hawkish surprise than today's 25bp hike.'