Bitcoin, crypto market see muted activity following FOMC rate hike

• Bitcoin held steady above $76,000 following the FOMC meeting, as markets had largely priced in a rate hike.
• The Federal Reserve raised interest rates 25 basis points in its first hike since July 2023, citing persistent inflation pressures.
• The unanimous 12-0 decision came despite President Trump’s calls for rate cuts, with Fed officials signaling continued focus on inflation.

Bitcoin (BTC) traded above $76,000 on Wednesday as the Federal Reserve (Fed) raised its benchmark interest rate by 25 basis points, bringing the federal funds target range to 3.75%-4.00%. The unanimous 12-0 decision marked the Fed’s first rate hike since July 2023.

Fed prioritizes inflation despite pressure for rate cuts

The Federal Open Market Committee (FOMC) said economic activity has continued to expand at a solid pace, while inflation remains elevated. The committee said the latest policy action would support a “timelier return” to its 2% inflation target.

The unanimous decision also marked the first such vote since May 2025, according to The Kobeissi Letter. The move came despite repeated calls from President Donald Trump for lower interest rates.

Trump had previously urged the Fed to cut rates and threatened additional tariffs on US trading partners if the central bank did not lower borrowing costs.

The latest decision moves in the opposite direction, with the Fed choosing to raise rates as it continues to prioritize bringing inflation back toward its target.

Updated economic projections also pointed to another rate increase later this year. Twelve of 18 Fed officials projected at least one additional hike in 2026, while the median projection put the federal funds rate at 4.1% at year-end.

Bitcoin holds above $76,000 after widely expected hike

Financial markets largely anticipated the rate increase, limiting the immediate reaction across the crypto market.

Bitcoin traded above $76,000 ahead of the announcement after facing separate pressure on Tuesday following the failure of digital-asset legislation in the US Senate. BTC initially traded around $75,000 following the decision before moving back above $76,000.

Ethereum (ETH) and major altcoins saw muted activity after the announcement, although Zcash (ZEC) outperformed much of the market, gaining 20% in the past 24 hours. The limited reaction reflects how much traders had already priced in the quarter-point increase.

Meanwhile, the stock market declined in the hours after the FOMC data was released.

The S&P 500 fell more than 30 points after the announcement, down 0.45% for the day. The Dow Jones Industrial Average fell the most, shedding 631 points on Wednesday.

The rate hike marks a shift from the Fed’s previous pause and signals that elevated inflation remains a central concern for policymakers. Further rate increases would potentially keep pressure on borrowing costs and liquidity conditions, which could affect demand for crypto assets.

Bitcoin is trading at $76,117, up 0.1% in the past 24 hours at the time of writing.