Bitcoin showed little immediate reaction to the Federal Reserve’s rate increase, but its post-decision bounce is being weighed against a roughly 40% decline from its October record and parallels with 2022.
Bitcoin barely moves after the Fed decision
The Federal Reserve’s rate-hike vote was unanimous, but Bitcoin had little immediate reaction to the announcement. The cryptocurrency held near $76,000 before and after the decision and was trading at about $76,300 after the news.
A choppy rebound leaves Bitcoin near key levels
Bitcoin later showed a modest rebound, rising 1.35% over 24 hours in one market reading and 0.88% in another, while trading around $76,621. The move was uneven: Bitcoin had also dropped below $76,000 during the period.
The 2022 comparison is the central test
Bitcoin is now about 40% below its October record high of $126,000, a drawdown that echoes its position when the Fed first raised rates in March 2022. After that initial hike, Bitcoin rallied roughly 18% over the following 12 days before subsequently falling around 50%.
Analysts are watching support and the range breakdown
Onchain support for Bitcoin has thickened at $68,000. Analysts have also identified $70,000 and the $62,000-$65,000 area as support levels, while chart analysts characterize the recent range breakdown as a bearish signal.
What could determine the next move
The policy backdrop remains unsettled. Core inflation has eased to 2.4%, but annual headline inflation has stayed above 2% for more than five years. Markets are pricing in another 75 basis points of tightening over the next six months, even as the expected 25-basis-point increase is described as largely priced in.