Stablecoin Shifts Ahead of Fed Rate Hike

Traders shifted their capital into stablecoins ahead of the Federal Reserve's interest rate decision on Wednesday, as markets showed limited movement. Bitcoin prices had been hovering between $76,000 and $80,000 in the weeks leading up to the policy update.

Investors minimized their risk exposure, with Bitcoin volatility falling to a one-month low during this period.

The Federal Reserve raised interest rates by 25 basis points, increasing the target range to between 3.75 percent and 4.00 percent. This marked the first central bank rate increase since 2023.