Fed's Rate Hold Sends Bitcoin into Volatility

The Federal Reserve's decision to keep interest rates steady has sent shockwaves through the crypto market. The Fed left its benchmark rate unchanged at 3.50% to 3.75%, matching expectations.

BTC briefly moved above $64,000 after the announcement before easing back to $63,900, down 0.2% over 24 hours. Glassnode noted that BTC has lagged a US dollar rally since May and ranks among the weakest showings versus the USD at a comparable point in the 20 dollar rallies tracked since 2015.

The firm linked the pressure to rising rates, with the 30-year Treasury yield above 5.20%, and to the three-month Bitcoin futures basis staying below the two-year US Treasury yield since February. This has created a negative spread, similar to one seen between August 2022 and January 2023.

Glassnode's data shows that a long-term holder supply wall exists at $83,000 to $86,000, while price remains close to the 200-day moving average. Analysts recommend keeping a defensive posture and focusing on short-term tactical trades rather than calling an early macro bottom.