Crypto Market Shrugs Off Fed Rate Hike, Zcash Surges 23%

The Federal Reserve raised its benchmark interest rate by 25 basis points to 3.75%-4%, marking its first hike since July 2023, as traders had priced in a 93% chance of the move. Bitcoin briefly touched $76,499 after the announcement but settled near $76,300, roughly flat on the day.

The broader crypto market held above $2.6 trillion, while Wall Street's reaction was more pronounced, with the Dow sinking about 1.2% and the S&P 500 sliding 0.4%-0.5%. Higher rates make Treasurys and cash more attractive relative to assets like Bitcoin that pay no yield.

Zcash, however, surged as much as 23% toward $1,425 after Paradigm co-founder Matt Huang disclosed his firm's ZEC stake, calling the token 'a private complement to Bitcoin.'