Crypto Markets Hold Steady After Fed Rate Hike
The Federal Reserve's decision to raise its benchmark rate by 25 basis points to 3.75%-4.00% had a relatively calm reaction from the crypto market, with Bitcoin holding steady at around $76,000.
Market expectations played a significant role in this outcome, as markets had already priced in a quarter-point increase before the meeting, reducing the shock when the Fed actually delivered it.
This is in line with a broader pattern in which Bitcoin can react sharply to changes in interest rates and liquidity, particularly when expectations for Fed policy change suddenly.
Despite this, the crypto market had already taken a beating prior to the Fed decision, with over $455 million in leveraged positions liquidated and significant withdrawals from U.S. spot Bitcoin ETFs and Ethereum ETFs.