Bitcoin and Ether Swing After Unanimous Fed Quarter‑Point Rate Hike

Bitcoin (BTC) and ether (ETH) experienced notable volatility on Wednesday following the Federal Reserve’s unanimous decision to raise the federal funds target range by a quarter‑point to 3.75‑4 %. The move marks the central bank’s first rate increase since July 2023.

Price Action

Bitcoin traded between roughly $75,000 and $76,500 after the announcement, settling near $75,600 at the time of reporting. Ether swung between about $2,370 and $2,430 before closing near the lower end of that range at $2,376.

Fed Decision Details

The Federal Open Market Committee voted 12‑0 to raise its target range, a decision that was largely expected. CME FedWatch indicated a 92 % probability of a quarter‑point hike in the hours before the vote, slightly down from the previous day’s 96 % probability.

Policy Outlook

Fed official Warsh described the economy as strengthening and said financial conditions were not particularly tight, noting that the committee “removed a dose of accommodation.” Sixteen of the eighteen policymakers projected at least one additional quarter‑point hike this year.

Crypto Market Reaction

Beyond BTC and ETH, most top‑20 cryptocurrencies were flat to modestly higher. XRP rose about 1.5 %, Solana gained 1 %, and Zcash posted a 6.5 % increase.

Analyst Perspective

Bitget analyst Lewis Huang observed that Bitcoin’s price moved roughly four times as much as the S&P 500 on the previous two FOMC trading days, suggesting crypto may absorb more of the immediate shock than equities. He warned that rising energy prices could test the path to further tightening.