Bitcoin absorbs Fed rate hike as officials see more tightening

Bitcoin held near its pre-Fed announcement levels of around $76,000 on Wednesday despite the US Federal Reserve raising its benchmark interest rate for the first time since 2023 to address persistently high inflation. The Fed’s Federal Open Market Committee on Wednesday voted unanimously to raise rates by 25 basis points to a target range of 3.75% to 4%, a move that typically puts pressure on stocks and other risk assets. However, Bitcoin showed little immediate reaction to the announcement and was trading at $76,663 at the time of writing, up 1.35% in 24 hours.“The initial reaction suggests the Fed’s decision was largely anticipated by crypto markets. Bitcoin has remained relatively resilient, holding broadly around pre-announcement levels even as equities moved lower,” said Cooper Duschang, research analyst at Talos in comments shared with Cointelegraph. Bitcoin’s price resilience came despite US stocks slipping on Wednesday. Crypto analysts said this resilience could be tested again if the Fed raises rates further this year. During the FOMC press conference, Fed Chair Kevin Warsh said that inflation remains too high while the US economy looks to be strengthening. The Fed’s updat...