The Federal Reserve raised its benchmark rate a quarter point to 3.75%-4% on Wednesday, its first increase since July 2023, and bitcoin spiked then gave back the move within half an hour. Stocks and gold closed lower, the 10-year Treasury yield hit its highest close since 2007, and spot bitcoin ETFs kept losing money.
Bitcoin jumped to $76,499.99 five minutes after the Fed's statement landed, then fell back to $75,725.11 ten minutes later and touched a session low of $74,911.53, Coinbase five-minute candles show. It last changed hands at $75,928, up 0.6% over 24 hours and down 2.7% over seven days.
The Fed's First Hike Since 2023
The Federal Open Market Committee voted 12-0 to raise the target range a quarter point, lifting it to 3.75%-4%. The median 2026 projection now sits at 4.1%, up from 3.8% in June, leaving room for one more increase before year end. The committee said inflation remains elevated and that the move will support a timelier return to its 2% goal.
Andreja Cobeljic, head of derivatives trading at AMINA Bank, had set a condition for a rally before the decision. Cobeljic said: "that is the clearest path to a relief rally across risk assets", if the hike arrived without signaling a steeper path than markets had priced in.
Stocks, Gold and Yields Move Together
The S&P 500 closed at 7,551.81, down 0.4% from Tuesday, while the Nasdaq Composite ended level with Tuesday's close. Gold settled at $4,302.50, down 0.7% on the day after touching $4,413.10 before the release. The 10-year Treasury yield closed at 5.01%, its highest close since July 19, 2007, the second consecutive close at or above 5%.
ETF Outflows Continue
U.S. spot Bitcoin ETFs lost $450.4 million on Tuesday, with Fidelity's FBTC accounting for $214.8 million of the outflow and BlackRock's IBIT for $161.7 million. The six sessions from Sept. 8 through Sept. 15 produced a net outflow of $753.2 million, with only one day of inflows in that stretch. The Crypto Fear & Greed Index read 51, or neutral, on Wednesday, against 69 on Tuesday, its lowest reading since Aug. 19.
Source: The Defiant
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