Fed Hike Doesn't Deter Bitcoin as Markets Price in Move

The Federal Reserve raised interest rates by a quarter point on Wednesday, its first hike since 2023. Bitcoin (BTC) surprisingly climbed anyway, defying the assumption that tighter policy hurts risk assets.

Markets had already priced in the move for days, with interest rate futures putting the odds of a hike at 92.7% just hours before the FOMC decision. Traders had adjusted their positions well in advance.

Bitcoin dropped to around $75,350 shortly before the decision, then jumped past $76,100 within minutes of the release. It went as high as $76,500 after the markets closed in the US, before settling near $76,138.

The Fed's unanimous 12-0 vote and measured statement may have contributed to the calm market reaction. However, other factors also played a role in the price action.