Rate Hike Leaves Crypto Market Relatively Unscathed

The Federal Reserve's first interest-rate hike since 2023 did not trigger another major crash for Bitcoin, Ethereum, and XRP. The Fed raised its benchmark rate by 25 basis points to 3.75%-4.00%, citing persistent inflation despite continued economic growth.

Bitcoin initially moved higher following the decision before settling around $76,000. Ethereum traded near $2,400, while XRP remained around $1.28. The relatively calm reaction came after an already brutal week for crypto, with the CLARITY Act failure sending Bitcoin below $75,000 and triggering another wave of leveraged liquidations.

Markets had already moved toward pricing in a quarter-point increase before the meeting, reducing the shock when the Fed actually delivered it. This fits a broader pattern in which Bitcoin can react sharply to changes in interest rates and liquidity, particularly when expectations for Fed policy change suddenly.