Why did it keep rising even after the rate hike? $BTC
On September 16, the U.S. Federal Reserve raised rates by 25 basis points, bringing the interest rate to 3.75%–4.00%—the first rate hike since 2023. The dot plot also suggests that another increase may be possible later this year.
This time, it didn’t immediately trigger a sell-off mainly because several things piled up together:
Rising expectations for further hikes, the <Clear Act> failing to pass in the Senate, and prices having already dropped from over 80,000 to 75,000 before the “shoe dropped.” When the decision finally came, the people who were going to sell already sold.
Around 75,000, there were many short positions stacked up. After the bad news was priced in, those shorts were closed. The resulting forced buying pushed the price upward.
On Friday, ETF inflows suddenly returned. On September 18, U.S. spot Bitcoin ETFs saw net inflows of about $433 million, pulling the week from a major outflow back to nearly flat.
Some of the funds interpret “high interest rates + high U.S. Treasury yields” as dollar-credit pressure. Bitcoin is being treated more like an asset that hedges—similar to gold—rather than simply a technology-growth stock.
So it’s not that “rate hikes are bullish for Bitcoin.” Instead, it’s: the news has already been priced in, and then you add short-covering plus an institutional rebound over the day.
This rally has been dubbed the “FOMO breakout”—a bull run you miss if you hesitated!
On September 16, the U.S. Federal Reserve raised rates by 25 basis points, bringing the interest rate to 3.75%–4.00%—the first rate hike since 2023. The dot plot also suggests that another increase may be possible later this year.
This time, it didn’t immediately trigger a sell-off mainly because several things piled up together:
Rising expectations for further hikes, the <Clear Act> failing to pass in the Senate, and prices having already dropped from over 80,000 to 75,000 before the “shoe dropped.” When the decision finally came, the people who were going to sell already sold.
Around 75,000, there were many short positions stacked up. After the bad news was priced in, those shorts were closed. The resulting forced buying pushed the price upward.
On Friday, ETF inflows suddenly returned. On September 18, U.S. spot Bitcoin ETFs saw net inflows of about $433 million, pulling the week from a major outflow back to nearly flat.
Some of the funds interpret “high interest rates + high U.S. Treasury yields” as dollar-credit pressure. Bitcoin is being treated more like an asset that hedges—similar to gold—rather than simply a technology-growth stock.
So it’s not that “rate hikes are bullish for Bitcoin.” Instead, it’s: the news has already been priced in, and then you add short-covering plus an institutional rebound over the day.
This rally has been dubbed the “FOMO breakout”—a bull run you miss if you hesitated!
