Fed Rate Hike Leaves Crypto Investors Scrambling to Adjust

The US Federal Reserve raised its benchmark rate by 25 basis points to 3.75-4% on September 16, which has left crypto investors assessing how much of the tightening is already reflected in prices and how much more could follow.

BTC had weakened well before the announcement, falling from $82,163 on 4 September to near $75,743 by the afternoon of 16 September in India. However, it was trading around $75,000-$76,000 after the decision, suggesting that some of the expected tightening was already reflected in the price.

The market's reaction to the rate hike is more complex than initially thought. The withdrawals from US spot Bitcoin ETFs totaled $450.4 million on 15 September and $295.9 million the following day, but two days do not establish a trend.