Bitcoin showed little immediate reaction to the Federal Reserve’s rate hike, while later market data pointed to mixed signals for the cryptocurrency’s next move.
Bitcoin barely moves after the Fed decision
The Federal Reserve’s rate-hike vote was unanimous, but Bitcoin showed little immediate reaction. The cryptocurrency held near $76,000 before and after the announcement and was up 1.35% over 24 hours.
Market flows were mixed beneath the calm
The subdued price action masked conflicting market signals. Bitcoin recorded about $15.5 million in net spot buying, while perpetual futures showed approximately $82 million in net selling over the past hour. Around 2,170 Bitcoin moved onto exchanges after the rate increase, followed by a withdrawal of 1,260 Bitcoin.
The $76,000 level remains central
Bitcoin traded below $76,000 into the Fed decision, after prices had held in a tight range above that level until the previous day. Onchain support thickened at $68,000. Chart analysts characterized the range breakdown as a bearish signal.
Why 2022 is back in the conversation
The comparison with 2022 reflects Bitcoin’s earlier response to tightening. When the Fed first raised rates in March 2022, Bitcoin was roughly 40% below its peak, rallied about 18% over the following 12 days and subsequently fell around 50%. The current backdrop includes annual headline inflation above 2% for more than five years, core inflation at 2.4% and markets pricing in another 75 basis points of tightening over the next six months. Bitcoin is also around 40% below its October high.
Bitcoin’s cross-asset signals are mixed
Bitcoin’s short-window correlation with the Dollar Index was reported at nearly zero, while its correlations with the S&P 500, Nasdaq and gold were 0.43, 0.30 and 0.28, respectively. Those readings offer no single cross-asset signal for the cryptocurrency’s next move after the Fed decision.