Bitcoin News
By Bruce Buterin
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Bitcoin Already Had Problems Before This. The rate hike didn't arrive in a vacuum. Bitcoin was already dealing with the fallout from the…
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What's Driving the Fed's Aggression. It's worth being clear about what pushed the Fed here. Wholesale energy costs have been climbing.
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Where Bitcoin Goes From Here. Unclear, honestly. The two big variables — Fed policy and the Digital Asset Market Clarity Act —…
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The Federal Reserve moved. Bitcoin felt it fast.
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The Fed raised its benchmark interest rate by 25 basis points, landing the new target range at 3.75% to 4%.
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Chairman Kevin Warsh didn't mince words. Inflation has run above the Fed's two percent target for nearly five years, he said, driven by rising wholesale energy costs and stubborn…
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The Federal Open Market Committee has also projected that another similar rate increase could come before the end of 2026.
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The rate hike didn't arrive in a vacuum. Bitcoin was already dealing with the fallout from the failure of the Digital Asset Market Clarity Act — the piece of legislation that…
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Rising interest rates do a specific thing to risk assets. Borrowing gets more expensive. Investors who were comfortable holding volatile positions start looking at Treasury bonds…
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And the Digital Asset Market Clarity Act stalling out makes it worse. Institutional money tends to follow regulatory clarity. Without a clear framework, big players stay cautious.
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Read also: Bitcoin Surges to $76,152 as Fed Signals More Rate Hikes Ahead
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The Fed had held off on rate hikes for a while, keeping rates low to support economic growth. That pause is over.
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The 25-basis-point move brings the target range to 3.75% to 4%. That's not the ceiling, either, if the FOMC's projections hold.
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Unclear, honestly. The two big variables — Fed policy and the Digital Asset Market Clarity Act — are both unresolved. The FOMC could hike again.
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What's clear is that Bitcoin's market position is closely tied to both. Another rate hike would likely add more pressure on the price.
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