🚨 Fed Hikes, Bitcoin Holds: What Just Happened in Crypto
The Fed just delivered its first rate hike since 2023 — and crypto barely blinked.
The macro shock
Under new Chair Kevin Warsh, the FOMC raised rates 25 bps to 3.75%–4.00%. It was heavily priced in (~92% odds going into the decision), which is likely why the reaction wasn't brutal. Bitcoin actually popped from ~$75,350 to above $76,100 within minutes of the announcement — a relief-rally move rather than a selloff, even as officials signaled inflation concerns aren't fully resolved.
The regulatory setback
Less than 48 hours earlier, the CLARITY Act failed to advance in the Senate, even after a last-minute bipartisan compromise. That knocked BTC below $75K and triggered roughly $770M in liquidations. Prediction markets now put the bill's chances of passing in 2026 at around just 12%, down from the more optimistic reads earlier this month.
The bigger picture
Put those two events together and you get the whipsaw crypto has lived through this week: a regulatory letdown dragging price down, followed by a "hike was already priced in" bounce. Bitcoin remains stuck below the $80K level that's acted as psychological resistance during the recent recovery attempt, with momentum indicators (CryptoQuant's Bull Score down from 80 to 60 this week) cooling off.
The Fed just delivered its first rate hike since 2023 — and crypto barely blinked.
The macro shock
Under new Chair Kevin Warsh, the FOMC raised rates 25 bps to 3.75%–4.00%. It was heavily priced in (~92% odds going into the decision), which is likely why the reaction wasn't brutal. Bitcoin actually popped from ~$75,350 to above $76,100 within minutes of the announcement — a relief-rally move rather than a selloff, even as officials signaled inflation concerns aren't fully resolved.
The regulatory setback
Less than 48 hours earlier, the CLARITY Act failed to advance in the Senate, even after a last-minute bipartisan compromise. That knocked BTC below $75K and triggered roughly $770M in liquidations. Prediction markets now put the bill's chances of passing in 2026 at around just 12%, down from the more optimistic reads earlier this month.
The bigger picture
Put those two events together and you get the whipsaw crypto has lived through this week: a regulatory letdown dragging price down, followed by a "hike was already priced in" bounce. Bitcoin remains stuck below the $80K level that's acted as psychological resistance during the recent recovery attempt, with momentum indicators (CryptoQuant's Bull Score down from 80 to 60 this week) cooling off.