Fed's Mild Rate Hike, Pro-Bitcoin Legislation Boost BTC Price

The price of Bitcoin (BTC) surged by 1.7% to $77,960 today, fueled by two key events: a relatively mild Federal Reserve policy update and significant legislative progress in Washington.

The Federal Open Market Committee voted unanimously to raise the federal funds rate by 25 basis points to a range of 3.75%-4.00%, marking its first increase since 2023. However, the accompanying dot plot projection indicated that further tightening would be limited, which was seen as a relief for risk assets.

The House Financial Services Committee passed the American Reserve Modernization Act of 2026 in a 28-21 vote, giving the US government's Strategic Bitcoin Reserve formal legal standing and requiring the Treasury to hold its forfeited Bitcoin for at least 20 years. The House Ways and Means Committee also approved the first-ever federal cryptocurrency tax framework by a wide margin.

The dovish undertone of the Fed's rate path projection weighed on the US dollar, which traditionally benefits from Bitcoin as an alternative store of value. Crypto futures open interest climbed notably in the wake of the Fed decision, suggesting traders were adding fresh exposure rather than simply covering short positions.