Crypto Defies Conventional Wisdom with Surprising Rally

Crypto markets are defying conventional wisdom by rising despite the Federal Reserve's recent interest rate hike. The Fed's FOMC voted 12-0 to lift the federal funds rate by 25 basis points to a range of 3.75%, 4.00%, which normally would be bad news for crypto.

However, traders seem unfazed and are buying in despite higher rates making safe savings accounts more attractive and pulling money away from riskier bets. The total crypto cap sits at $2.7 trillion, up 1.3% in a day, with $92.4 billion changing hands in trading volume.

The American Reserve Modernization Act of 2026 and the Digital Asset Tax Certainty Act cleared House committees and are headed for a full vote, which could have significant implications for crypto markets.