The Federal Reserve raised interest rates by 25 basis points on Sept. 16, marking its first hike in more than three years. While tighter policy is usually seen as negative for risk assets such as Bitcoin, the market reaction was brief: BTC dipped, then quickly recovered and moved higher. Analysts said the hike had been widely expected, which limited its immediate impact.
They argued that a bigger source of volatility came a day earlier, when the U.S. Senate failed to pass the CLARITY Act on Sept. 15. Data cited in the report showed spot Bitcoin ETFs posted about $450 million in net outflows that day, followed by another $296 million in net outflows on Sept. 16. According to the analysts, upcoming inflation, employment and U.S. Treasury yield data may matter more for Bitcoin than the Fed meeting itself. If inflation cools and yields stabilize, pressure on the asset could ease.
Bitcoin rose after the Federal Reserve announced a 25-basis-point rate hike on Sept. 16, its first increase in more than three years, according to a Techub News report citing CryptoPotato.
Although higher rates are typically viewed as a negative for risk assets including Bitcoin, the token only fell briefly after the decision and then rebounded into gains. The policy move was approved unanimously.
Analysts say the hike was already priced in
Analysts said the market had largely anticipated the rate increase, which helped limit its direct effect on Bitcoin.
In their view, the sharper market reaction came from the U.S. Senate’s failure to pass the CLARITY Act on Sept. 15 rather than from the Fed decision itself.
Spot Bitcoin ETFs saw two straight days of outflows
Data showed spot Bitcoin ETFs recorded roughly $450 million in net outflows on Sept. 15. On the following day, net outflows reached $296 million.
Inflation, jobs and Treasury yields are the next focus
Analysts said inflation data, employment figures and U.S. Treasury yields will be more important for Bitcoin going forward than the Fed meeting itself. If inflation cools and yields stabilize, pressure on Bitcoin may ease.
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