Crypto Market Rebounds After First Rate Hike in Over Three Years

The Federal Reserve's first rate hike in over three years saw crypto market react with a rebound. The Fed raised interest rates by 25 basis points to a target range of 3.75% to 4.00%, marking its first increase since 2023. Despite this, major cryptocurrencies such as Bitcoin and Ethereum were able to regain their footing, with BTC rising to $76.4k and ETH up 1% at $2,440.

Altcoins, however, were the real stars of the show, with several posting double-digit gains. ZEC jumped 12% to $1,360, while NEAR rallied +18%, LIT +14%, and VVV +12%. The recent alt darlings are showing signs of strength and risk-on bids.

The Fed's decision was seen as a test for the crypto market, which has been sensitive to interest rate hikes in the past. However, this time around, it appears that crypto has absorbed the pain without flinching. In fact, the market is no longer going down on bad news, and bears are being put on notice.