Fed raises interest rates for the first time since 2023, $BTC losing 4% then bouncing back in 2 days.
The Fed just raised interest rates to the 3.75%-4.00% range after its meeting on Sept. 15-16, the first increase since 2023. This goes against market expectations, which were waiting for a round of rate cuts.
Fed Chair Kevin Warsh said directly that inflation is still too high compared with the 2% target. On the same day, JPMorgan CEO Jamie Dimon warned that it’s not certain the inflation problem has been “put down”; it could return.
Higher interest rates typically pull money away from risk assets like crypto, because savings accounts or bonds suddenly become more attractive.
The real figures: $BTC fell from $78,189 on Sept. 14 to a near-low of $74,968 on the very day the Fed met, down about 4%, then rebounded to $76,820 just two days later—up nearly 1% over the past 24 hours. The reaction was much milder than many had feared.
16 of 18 Fed officials are believed to still support further increases before the end of the year. It will be worth watching whether this is a one-off or the start of a streak.
#BTC #Fed #Bitcoin #CryptoNews #Macro
The Fed just raised interest rates to the 3.75%-4.00% range after its meeting on Sept. 15-16, the first increase since 2023. This goes against market expectations, which were waiting for a round of rate cuts.
Fed Chair Kevin Warsh said directly that inflation is still too high compared with the 2% target. On the same day, JPMorgan CEO Jamie Dimon warned that it’s not certain the inflation problem has been “put down”; it could return.
Higher interest rates typically pull money away from risk assets like crypto, because savings accounts or bonds suddenly become more attractive.
The real figures: $BTC fell from $78,189 on Sept. 14 to a near-low of $74,968 on the very day the Fed met, down about 4%, then rebounded to $76,820 just two days later—up nearly 1% over the past 24 hours. The reaction was much milder than many had feared.
16 of 18 Fed officials are believed to still support further increases before the end of the year. It will be worth watching whether this is a one-off or the start of a streak.
#BTC #Fed #Bitcoin #CryptoNews #Macro
