Fed Hikes Rates for the First Time Since 2023, Bitcoin Spikes
The Federal Reserve raised rates by 25 basis points, its first hike since 2023, bringing the federal funds target to 3.75%–4.00%. The move matched market expectations and had unanimous FOMC support. The Fed said economic activity remains solid but inflation is still elevated, and the hike should help bring inflation back to 2% sooner. Recent inflation data helped drive the decision: both producer and consumer prices came in hotter than expected, while stronger jobs data and rising oil prices added pressure. Markets had already shifted toward expecting tighter policy after that data. Bitcoin was weak heading into the announcement, trading near $75,200, and briefly dipped then spiked to around $76,000 before stabilizing around the low $75,000s. The broader crypto market fell about 2.18% on the day. Bitcoin is still holding above a key support zone, while sentiment has fallen back to neutral.
