Bitcoin Holds $76,000 Amid Fed's First Rate Hike in Three Years

Despite the U.S. Federal Reserve raising interest rates for the first time in three years, Bitcoin (BTC) maintained its price above $76,000, showing relatively limited reaction.

CoinTelegraph reported that as of the time of writing, Bitcoin traded at $76,663, up 1.35% from 24 hours prior. The Federal Open Market Committee (FOMC) unanimously decided to raise the benchmark rate by 0.25 percentage points to a range of 3.75%-4.00%, marking its first hike since 2020.

While rising interest rates typically weigh on risk assets like stocks and cryptocurrencies, Bitcoin held steady following the announcement. Cooper DuShane of Tardos Research noted that "the initial reaction suggests the Fed's decision was largely priced into the virtual asset market," adding that Bitcoin maintained its pre-announcement levels even as stock markets declined.

Spot and derivatives markets showed divergent trends. In the perpetual futures market, approximately $82 million in Bitcoin and $68 million in Ethereum (ETH) were sold off within an hour of the rate decision. Meanwhile, spot Bitcoin saw around $15.5 million in net buying pressure, suggesting that spot demand absorbed some of the selling pressure from derivatives markets.

Exchange flows also became active, with approximately 2,170 BTC moving into exchanges before 1,260 BTC was withdrawn. DuShane explained this as investors actively adjusting positions rather than a blanket risk-off move, saying they were digesting the Fed's message.

However, concerns remain that Bitcoin's price resilience may face renewed testing if the Fed signals further rate hikes this year. Andrew Melville of Blockscouts Research warned that additional increases could be perceived as more dovish to the market than the current 0.25 percentage point hike. Martin Lee of DWF Labs also cautioned that the Fed's 'higher for longer' stance could lead to a revaluation of risk assets.