Bitcoin showed little immediate reaction to the Federal Reserve’s rate increase and later moved higher, while analysts pointed to the cryptocurrency’s 2022 performance as a cautionary precedent.
Bitcoin absorbs the Fed’s rate increase
The Federal Reserve’s rate-hike vote was unanimous. Bitcoin had little immediate reaction to the announcement, holding near $76,000 before and after the decision.
A post-decision bounce follows
Bitcoin later rose above $78,000 during the European morning and was up 2.1% since midnight UTC. Over 24 hours, it had risen 0.88%.
Why 2022 remains the key comparison
Bitcoin rallied roughly 18% in the 12 days after the Federal Reserve’s initial March 2022 rate hike. It subsequently fell around 50%, making that sequence a cautionary precedent for the current bounce.
The market is still well below its peak
Bitcoin is currently about 40% below its October record high of $126,000. Analysts identified $70,000 and the $62,000-$65,000 range as support levels.
What traders are watching next
The expected rate increase was largely priced in before the decision, while markets are pricing in a further 75 basis points of tightening over the next six months. Chart analysts characterized a breakdown from Bitcoin’s prior range as a bearish signal, leaving the durability of the post-Fed move uncertain.