Crypto markets rally after Fed’s first rate hike since 2023, with Bitcoin holding steady and Zcash hitting a record

Cryptocurrencies gained momentum on Thursday following the Federal Reserve’s decision to raise its policy rate by 25 basis points – the first increase since July 2023. The move, which traditionally makes interest‑bearing assets more attractive, instead coincided with a broad rally in digital assets.

Bitcoin steadies amid historic context

Bitcoin (BTC) climbed to $76,242.96, up roughly 1% over the previous 24 hours. The price remains about 40% below its October record high of $126,000, a distance similar to Bitcoin’s position when the Fed began tightening in March 2022.

Zcash hits a new peak

Privacy‑focused Zcash (ZEC) surged more than 23%, reaching a record high. The jump contributed to the overall positive sentiment across major tokens.

Market dynamics and fund flows

• Spot Bitcoin ETFs saw net outflows of $746 million over Tuesday and Wednesday.
• Futures markets are pricing in an additional 75 basis‑point rate increase within the next six months.
• Goldman Sachs moved its forecast for the next Fed hike forward to October.

Broader economic backdrop

Core inflation eased to 2.4%, the lowest level in five years, while Brent and WTI crude prices stayed above $100 per barrel. U.S. diesel prices hit a weekly record, and the 10‑year Treasury yield hovered around 5%.

Outlook

Traders recall the 2022 cycle, when Bitcoin rallied 18% before a prolonged decline that coincided with the collapse of the FTX exchange. The current rally may be the early phase of a relief move, but continued caution is warranted as the Fed’s tightening intersects with supply‑side pressures.