Fed Rate Hike Sparks Fears of Another Crypto Crash

The Federal Reserve raised interest rates by 25 basis points to 3.75%, 4.00%, its first rate hike since July 2023.

The decision was unanimous, with all 12 voting FOMC members backing the increase as the Fed seeks a 'timelier' return to 2% inflation.

The Fed's updated projections point to one more 25-basis-point hike in 2026, which could have a significant impact on Bitcoin and other risk assets.

BTC was trading around $75,580 shortly before the Fed announcement, after falling almost 4% Tuesday.