Rate hike lands, but BTC goes up instead? Don’t rush to chase 🔥
Last night the Federal Reserve raised rates as expected by 25 basis points, bringing the target range to 3.75%-4%✅. After the news broke, BTC $BTC didn’t fall— it actually surged, briefly holding above $76,000, while $ETH also rebounded.
This rate hike was already priced in by the market ahead of time. With the bearish news “played out,” short-sellers covered their positions, pushing the coin price higher. But inflation is still relatively high, and the dot plot also didn’t signal any easing. In addition, spot BTC ETF flows have continued to see outflows; on September 15 and 16 combined, net outflows exceeded $600 million. There hasn’t been sustained incremental support in liquidity 📉.
So now it’s not recommended to blindly go long. The institutional allocation logic over the medium to long term is still there, but to see a sustained trend, the key is whether the incoming capital can return again.
Last night the Federal Reserve raised rates as expected by 25 basis points, bringing the target range to 3.75%-4%✅. After the news broke, BTC $BTC didn’t fall— it actually surged, briefly holding above $76,000, while $ETH also rebounded.
This rate hike was already priced in by the market ahead of time. With the bearish news “played out,” short-sellers covered their positions, pushing the coin price higher. But inflation is still relatively high, and the dot plot also didn’t signal any easing. In addition, spot BTC ETF flows have continued to see outflows; on September 15 and 16 combined, net outflows exceeded $600 million. There hasn’t been sustained incremental support in liquidity 📉.
So now it’s not recommended to blindly go long. The institutional allocation logic over the medium to long term is still there, but to see a sustained trend, the key is whether the incoming capital can return again.
