Fed Hikes Rates Amid Inflation Fears, Sends Bitcoin Soaring

The Federal Reserve has increased interest rates for the first time since July 2023, a decision that was in line with market expectations. The target range for the federal funds rate now stands at between 3.75% and 4%, up from 25 basis points.

The FOMC's unanimous decision came as inflation concerns mount due to the Middle East crisis, with oil prices surging once again on recent escalations in the U.S.-Iran war. August PPI and CPI inflation data also came in hot, further fueling bets that the Fed would hike rates.

The crypto market experienced significant volatility ahead of the rate decision, but Bitcoin surged following the announcement, trading just below $76,000.