Bitcoin Stays Above $76k as Fed Hikes Interest Rate

The US Federal Reserve raised its benchmark interest rate by 25 basis points on the 16th, but Bitcoin held steady around $76,000. The market had largely priced in the move ahead of the decision.

Bitcoin was trading at $76,223 as of the 17th, up 0.7% from the previous day, according to CoinMarketCap. The cryptocurrency showed some volatility around the Fed's rate announcement but recovered the $76,000 level with modest gains.

The Fed raised its target range for the federal funds rate to 3.75%-4.00% from 3.50%-3.75%. It marked the first rate increase in three years and two months, since July 2023. The median projection among Fed officials for the benchmark rate stood at 4.1%, implying one additional hike this year.

Fed Chair Jerome Powell stated that inflation is too high and has been too high for too long, adding that the underlying trend has not meaningfully improved based on summer inflation readings.