Bitcoin held near its pre-Federal Reserve announcement levels around $76,000 on Wednesday after the central bank raised its benchmark interest rate by 25 basis points to a target range of 3.75% to 4%, the first increase since 2023. The cryptocurrency was trading at $76,663 at the time of writing, up 1.35% in 24 hours.
The Fed's Federal Open Market Committee voted unanimously on the rate hike, a move that typically pressures equities and risk assets. US stocks slipped on Wednesday, but Bitcoin showed little immediate reaction.
"The initial reaction suggests the Fed's decision was largely anticipated by crypto markets," said Cooper Duschang, research analyst at Talos. "Bitcoin has remained relatively resilient, holding broadly around pre-announcement levels even as equities moved lower."
Fed Chair Kevin Warsh said during the FOMC press conference that inflation remains too high while the US economy appears to be strengthening. The Fed's updated economic projections show a majority of officials see at least one more rate hike before year-end. Sixteen of 18 FOMC participants expected another increase this year, according to the US Federal Reserve.
Andrew Melville, head of research at Block Scholes, said another rate rise would be "a more hawkish surprise than today's 25bp hike."
While Bitcoin's price action was muted, Duschang noted significant movement in spot and derivatives markets. Perpetual futures shifted toward net selling, driven by approximately $82 million in Bitcoin and $68 million in Ether over the past hour. In contrast, Bitcoin recorded around $15.5 million in net spot buying, suggesting spot demand is absorbing some of the selling pressure from derivatives.
Exchange flows also moved sharply, with around 2,170 Bitcoin transferred onto exchanges following the rate increase, followed by a withdrawal of 1,260 Bitcoin. "Rather than a uniform risk-off response, investors appear to be actively repositioning as they digest the Fed's message," Duschang said.
Martin Lee, market insights lead at DWF Labs, said the renewed "hawkish stance" of "higher for longer" rates would lead to risk-on assets repricing the new reality. The key question, analysts say, is whether Bitcoin's resilience and spot demand hold as attention shifts from the widely anticipated hike to the prospect of further tightening.
