Bitcoin swung as low as $75,355 before settling near $75,813 after the Federal Reserve raised its benchmark rate to a range of 3.75% to 4%, its first hike since 2023. Fed Chair Kevin Warsh said price stability remains the central bank's top priority, while the coin now trades below its Ichimoku cloud with the 200 SMA emerging as key support.
Bitcoin swung as low as $75,355 in the hour after the Federal Reserve raised its benchmark federal funds rate to a range of 3.75% to 4% on Wednesday, before settling near $75,813. The move was the Fed's first hike since 2023.
The leading cryptocurrency is down nearly 4% over the past seven days, with much of that move priced in ahead of time. Traders had bet there was a more than 90% chance the Fed would raise interest rates before its September meeting, so major trades likely happened before Wednesday.
Warsh puts inflation ahead of Trump's rate wish
Fed Chair Kevin Warsh told reporters that "inflation is too high, and has been for too long". He added that this summer's inflation readings do not tell him underlying trends have meaningfully improved.
The new chair is seemingly going against President Donald Trump's wishes. Trump has repeatedly called for lower rates and even threatened to fire the previous Fed chair for refusing to cut them. When reporters asked what he would tell the president, Warsh declined to discuss it.
Bitcoin tests support below the Ichimoku cloud
Bitcoin bounced to $75,791 after breaking below its Ichimoku cloud, which now sits between $76,953 and $77,777, with the 20 SMA at $76,990 also sitting above current price. The price still trades 3% above the 200 SMA at $73,418, a level now emerging as key support.
According to Investing.com, the MACD reads -539 below its signal line, while the RSI at 37 sits near oversold territory. The distribution range near $82,178 is 80% complete, pointing to exhaustion among recent buyers.
Sources: Bitcoin Magazine, Investing.com
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