Fed Rate Hike Weighs on Crypto Investors

The US Federal Reserve raised its benchmark rate by 25 basis points to 3.75-4% on September 16, impacting crypto investors who must assess how much of the tightening is already reflected in prices.

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.

This decline of roughly 8% suggests that some of the expected tightening was already reflected in the price, but it does not establish how BTC will respond to a longer period of higher rates.

Institutional investors are also affected by the rate hike, as they must consider whether to reduce their allocation to BTC due to increased borrowing costs or client risk aversion.