Fed Hike Sends Mixed Signals as Bitcoin Holds Steady

The Federal Reserve raised interest rates by 25 basis points on September 16, marking its first hike since 2023. Despite this move, Bitcoin remained relatively steady around $75,000 to $76,000.

Fed Chair Kevin Warsh stated that the economy is strengthening and that he was 'hard-pressed' to call financial conditions restrictive.

The Fed's updated projections showed that 16 of 18 officials expect at least one more rate hike before the end of the year. This would be a more hawkish surprise than Wednesday's move, according to Andrew Melville, head of research at Block Scholes.

In related news, US spot Bitcoin ETFs saw roughly $746 million in net outflows over the two sessions around the Fed meeting. Total ETF net assets fell to approximately $95.19 billion on September 16, down from $100.09 billion on September 14.