Bitcoin fell after the Fed’s pause, but blaming interest rates misses the Binance shock
The Fed held its benchmark rate at 3.75%–4% in a 10–2 vote, with two officials favoring a quarter-point increase. Strong third-quarter growth and persistent annual inflation offered little reason to expect near-term easing, though real consumer spending and disposable income showed household strain. Bitcoin’s decline also coincided with a Binance security breach: the exchange estimated about $6 billion in impact, said roughly $3 billion was frozen on-chain, temporarily halted withdrawals, and pledged to cover losses. Bitcoin briefly touched about $76,460 before recovering toward $78,500; reported liquidations totaled $1.53 billion over 24 hours, mostly long positions. The selloff likely reflected multiple pressures, including financing costs, exchange-access concerns, and broader market risk, rather than a clear verdict on the Fed decision alone.
