Bitcoin Holds after Fed’s First Rate Hike Since 2023, Zcash Surges Past $1,380

The Federal Open Market Committee voted unanimously to lift the federal funds target range to 3.75%‑4.00%, marking the first rate increase since July 2023. The move sparked a five‑minute rally in Bitcoin, which quickly retreated, while several altcoins posted notable gains.

Market reaction to the Fed decision

Bitcoin rose to $76,499.99 within five minutes of the Fed announcement, then fell back to around $75,700 within the next ten minutes and closed the session near $75,937. The S&P 500 and gold also made short‑term gains before ending the day lower.

Key crypto price moves

• Bitcoin: $75,928, up 0.6% over 24 hours, down 2.7% over seven days.
• Ether: $2,402, up 0.4% on the day, down 2.3% weekly.
• Zcash: $1,383.30, up 19.1% on the day.
• Arbitrum: up 14% on the day.
• Stellar: up 3.1% on the day.
• Solana, BNB, XRP: modest gains of 1.6%, 1.2% and 0.9% respectively.

Broader market context

The total crypto market value stood at $2.68 trillion with Bitcoin dominance at 56.84%. The 500 largest tokens rose 0.75% over 24 hours but fell 2.7% over the week. Eighty‑seven of the 123 largest non‑stablecoin tokens gained, while 34 fell.

Fed projections and market pricing

The median Fed projection now sees the federal funds rate at 4.1% by the end of 2026, up from 3.8% in June, leaving room for one more quarter‑point hike this year. Polymarket pricing reflected a near‑certain expectation of a rate increase at the next meeting.

Other market movements

• U.S. spot Bitcoin ETFs saw net outflows of $450.4 million on Tuesday.
• DeFi total value locked fell 2.3% to $86.71 billion.
• Stablecoin supply held at $309.48 billion, down 0.35% weekly.
• U.S. Treasury yields rose, with the 10‑year yield closing at 5.01%.

Regulatory backdrop

The Senate voted against advancing the Digital Asset Market Clarity Act, leaving the legislative framework for crypto markets uncertain.