$ETH Will the rate hike affect the bull market???
Last night, the Fed raised rates by 25 basis points as expected, bringing the federal funds rate to 3.75%–4%. After the news was released, BTC didn’t fall—rather, it rebounded, briefly reclaiming $76,000. ETH also followed with a bounce. But Dan Jie believes that what’s truly worth watching now isn’t the 25 basis points themselves, but what the Fed is planning to do next.
This time the hike was within expectations, and the market had already priced in the negative news in advance. So when the announcement landed, short-covering showed up, and it’s not surprising that BTC was pushed up.
However, judging from the policy signals, inflation is still on the high side, and the dot plot hasn’t fully shifted toward easing. By the end of 2026, the median rate is still around 3.9%.