Bitcoin's Bull Index Implodes After Fed's Rate Hike

The Bull Score Index, a sentiment indicator used to gauge Bitcoin's trend, plummeted from 80 to 30 in just one week following the Federal Reserve's rate hike announcement on September 16. The index aggregates multiple on-chain and market signals, with readings above 60 indicating bullish conditions and below 40 signaling bearish sentiment.

The Fed raised interest rates by 25 basis points, bringing the target range to 3.75%-4.00%. This marks the first rate hike since 2023, and the crypto market's reaction was as expected with cheap money becoming more expensive again.

Bitcoin is currently trading around $76,000, having shed roughly 4% over the past week. Intraday moves have been modest, ranging between -0.4% and -1%, but the broader direction is clearly downward.