- Fed rate expectations are influencing the price of Bitcoin.
- Bitcoin prices influenced by Fed's monetary policy.
Bitcoin Reacts to FED Rate Hike Amid Risk Appetite Return
- Reports
- 6
- Developments
- 3
- Repetition
- 67%
New informationRepeats or wire copies
What happened
The Federal Open Market Committee voted 12-0 to raise the federal funds target range by 25 basis points to 3.75%-4.00% on September 16, 2026, marking the first increase since July 2023. Despite the rate hike, Bitcoin remained roughly flat in the immediate 24 hours. Separately, Bitcoin surged near US$85,000 after ETF flows turned positive, extending a rebound.
Why it matters
The market is observing how Bitcoin reacts to monetary policy decisions, as rate changes impact the asset most when they surprise traders. The recent rally was supported by a broader return of risk appetite, which is influencing financial markets.
Bitcoin prices are influenced by the Federal Reserve's monetary policy, and expectations regarding Fed rates are affecting Bitcoin's price.
Who's involved
- BitcoinThe digital cash system whose price is being tracked and influenced by monetary policy.
- FEDThe business that implemented the rate hike via the Federal Open Market Committee.
- Federal Open Market CommitteeThe committee of the United States Federal Reserve that voted on the rate change.
- Jerome PowellThe Chair of the Federal Reserve who described an economy gaining strength.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- CleanSparkSpeculative
CleanSpark might face increased financing costs for Bitcoin miners due to the rate hike.
- BlackRockSpeculative
BlackRock might see increased demand for institutional products tied to Bitcoin's price action following market rallies.
- NasdaqSpeculative
Nasdaq might experience capital flows into growth stocks as risk appetite increases.
How it developed
Newest first. Tap a step to see who reported it.- Bull DeFi is headquartered in the UK, and interest rate hikes are increasing focus on risk assets.Sub-event
Fed rate changes have the largest impact on Bitcoin during market surprises.1 source
Bitcoin showed resilience after the FED implemented a rate hike.1 source
Keep exploring
Part of
Bitcoin prices influenced by Fed's monetary policy.Also in this story
- Treasury market actions inadvertently strengthened Bitcoin's monetary argument, with institutional inflows via BlackRock bolstering ETF buying.
- Market movements for STRIVE are tied to FED policy, which influences Bitcoin prices, noting STRIVE holds significant Bitcoin reserves.
Within Fed rate expectations are influencing the price of Bitcoin.
The entities involved
Related events
- Bitcoin prices are closely tracking interest rate signals from the FED as the Jackson Hole symposium approaches.
- The Fed's tightening policy, coupled with supply shock concerns, led to a crypto rally and prompted Goldman Sachs to adjust its rate hike forecast.
- Analysts at Bitfinex are providing technical analysis on Bitcoin, while the upcoming Fed rate decision is expected to impact market movement.
- Bitcoin exchange rate is closely watched by investors amidst market skidding due to the decline of the US dollar.
- Higher Treasury yields challenge Bitcoin's rebound.