Big News Delivered | The Federal Reserve Restarts Rate Hikes
Big news, delivered! After three years, the Federal Reserve has once again raised rates by 25 basis points. The benchmark interest rate is adjusted to 3.75%-4.00%, and the dot plot releases a signal: it’s likely there will be one more rate hike within this year. Many friends wonder: when the US raises interest rates, why do the Bitcoin and crypto markets get hit as well? Below, I’ll explain the logic in plain language. How exactly does a rate hike affect the crypto market? 1. The opportunity cost of holding coins increases Mainstream cryptocurrencies like Bitcoin and Ethereum do not generate interest on their own. After the rate hike, US Treasuries and dollar deposits can yield solid risk-free returns. Institutional funds do the math: you can reliably earn interest by holding government bonds—why take risks to rush into a high-volatility crypto market? So some risk capital chooses to withdraw from the crypto market.
[LIVE] 🎙️ Build Binance Square, DCA BNB|Thursday: The Fed hikes rates for the first time in three years, and the market quickly responded. What does everyone think about this rate hike and its impact on the market? Let’s chat~
Every immortal has their own mountain, and every bodhisattva has their own temple. You must have your own place of practice. This is a remedy of great value. Good morning 🌻
In the early hours of September 16, Beijing time, the U.S. Senate delivered its result on a procedural vote regarding the “Clarity Act” for the digital assets market. The bill failed to clear the 60-vote threshold, so it cannot move on to the next stage of formal consideration. The highly anticipated crypto regulatory legislation—one that the industry had pinned great hopes on—has, for now, been stalled.
One point needs to be clarified: this time, the bill was not directly rejected. Instead, it failed at the procedural step required to advance. The bill remains on the congressional calendar, and in theory there is still a possibility of being brought back for reconsideration. However, given the pace of congressional proceedings, the likelihood of it being enacted again within 2026 has become extremely low.
What problem the bill was originally meant to address
The bill is widely seen as a landmark piece of legislation in the crypto industry. Its core goal is to clarify regulatory authority and responsibilities: to define the jurisdictional boundaries between the SEC and the CFTC; to lay out a federal-level compliance path for crypto exchanges and stablecoin projects; and to put an end to the long-standing situation where “regulation relies on enforcement actions and the rules are unclear.”
For a long time, the biggest pain point for the crypto industry has been vague and ambiguous rules. Institutional capital wants to enter the market but lacks a unified legal benchmark. Ordinary investors also face the risk of platform blowups and having no clear path to seek redress. Industry stakeholders from multiple sides have spent significant effort lobbying and negotiating, hoping that this bill could end the regulatory gray area.
Why it ultimately failed to clear the threshold
The bill was stalled due to irreconcilable disagreements between the two parties.
On the Democratic side, the view is that the existing version does not provide sufficient strength on consumer protection, anti-money laundering, and risk controls. They worry that the bill would give the industry overly relaxed space, sowing hidden financial risk vulnerabilities. Some Republican lawmakers, meanwhile, are concerned that expanding regulatory authority would raise compliance costs for businesses and dampen the innovative momentum of digital asset development.
Even though the legislative team revised the provisions multiple times and added patches such as interest-constraint measures for public officials, the core conflict still could not be bridged. In the end, the vote margin was clearly insufficient, and it failed to meet the Senate’s hard requirements to advance the bill.
September 17|The Fed hikes rates again after three years, sparking a hawkish shock in the market
At the Fed FOMC meeting, all members voted in favor of a 25-basis-point rate hike. The target range for the federal funds rate has been raised to 3.75%‑4.00%, marking the first rate hike since July 2023.
The latest dot plot sends a clear signal: 16 officials believe there is a high probability of another rate hike within 2026. The median rate expectations for 2026 and 2027 remain at 4.1%.
After the meeting, Fed Chair Waller said the current U.S. economy and employment market are still very resilient, but the stubborn inflation problem has yet to be resolved. He noted that the committee has not yet seen convincing evidence that inflation is steadily moving back down toward the 2% target. He also said plainly that the key contradiction now is not economic growth, but persistently high inflation.
Regarding the rise in U.S. Treasury yields, Waller attributed it to three main factors: the strength of the U.S. economy, intensifying competition for capital, and geopolitical risk. While he did not directly comment on the U.S.-Iran conflict, he acknowledged that the geopolitical situation is reshaping economic assessments.
During the decision and press-conference phase, the market reaction was quite intense: spot gold briefly plunged by nearly $100; the U.S. dollar index surged by 40 points and climbed above the 100 level; the 2-year Treasury yield rose by 10 bps, and the 10-year yield increased by 5 bps, with equities across the board turning lower.
Rate-futures are being repriced: the market now expects a total of about 33 bps more rate hikes within 2026, up by 6 bps compared with before the decision. By next June, market pricing implies additional room for rate hikes totaling 75 bps, equivalent to three more 25-bp hikes.
Riding the waves to迎光, embarking on new horizons, together we reach far, and open a brilliant new chapter. Ride the waves, embrace light, and stride toward a brilliant future.
☀️A gentle morning breeze through the forest opens a brand-new chapter of the morning 🌿
Morning jogging is a discipline of the mind, and trading is also a form of practice 📊. A long journey is won by steady progress; there’s no need to sprint all at once. Market fluctuations are like the scenery along the road—steady at times, and occasionally demanding 🕊️. Hold your rhythm, stay clear-headed, and don’t let short-term gains or losses pull you around ✨. Keep persisting and refining yourself—opportunities will surely arrive on time 💎.
To fellow travelers: keep your love at heart, and walk with ease ❤️
☀️🧧Morning light passes through the forest, and a new journey is officially underway 🌿
When traveling, it matters to proceed step by step—trading is the same 📊. The market has its ups and downs; there’s no need to let a momentary rise or fall unsettle your mind 🕊️. Stay sharp, hold your focus, and don’t blindly chase short-term fluctuations ✨. Slowly deepen your understanding, make a plan, and patiently wait for your own opportunity 💎.
May fellow travelers move forward steadily and live up to the time 🌱 #美联储加息是否已成定局 #交易训练 #1688家族family
$BTC C spot ETF net outflow of $450 million, the largest since June! Tonight's Federal Reserve meeting—most of the rate-hike bearish news has already been released. So it's likely they'll pump first and then dump. Are you ready??? #美联储加息是否已成定局
Autumn frost dyes the leaves, no tender grace to harm; weaving subtle splendor, gracing nature’s final charm! Autumn frost dyes the leaves, no tender grace to harm; weaving subtle splendor, gracing nature’s final charm!
Autumn frost dyes the leaves, no tender grace to harm; weaving subtle splendor, gracing nature’s final charm! Autumn frost dyes the leaves, no tender grace to harm; weaving subtle splendor, gracing nature’s final charm!