The U.S. Federal Reserve voted unanimously to raise its benchmark interest rate by 25 basis points, lifting the target range to 3.75%–4.00%. The move marks the first rate hike in more than three years, reversing the rate cuts seen in late 2025 and putting the Fed back on a tighter policy path.
Despite the rate hike, Bitcoin’s price continues to trade around $76K.
Fed Raises Rates to 3.75%-4%
The Federal Open Market Committee voted 12-0 to raise the federal funds rate by 25 basis points. The unanimous decision marks the first Fed rate hike in more than three years.
Inflation remains the main reason behind the Fed’s latest move. U.S. CPI stayed at 3.4% year over year in August, well above the central bank’s 2% target.
Higher energy prices have also added pressure, with geopolitical tensions pushing crude oil prices above $106 per barrel.
During the post-meeting press conference, Fed Chair Kevin Warsh said that the unanimous rate hike was necessary because recent price data failed to satisfy the central bank’s core benchmarks for economic stabilization.
“We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed.”
Fed Signals More Rate Hikes Ahead
The latest projections show that policymakers expect one more 25-basis-point hike in 2026, taking the rate to 4.00%-4.25%.
The median projection for the federal funds rate in 2027 stands at 4.1%, suggesting two additional hikes next year.
This keeps the possibility of higher rates in place through 2027 and marks a clear shift from earlier expectations for rate cuts.
Bitcoin Holds Near $76K After Fed Decision
Despite the rate hike, Bitcoin showed a limited reaction to the Fed’s decision, holding near $76,045. The overall crypto market was valued at around $2.67 trillion, while 86,565 traders were liquidated for about $327.84 million over the past 24 hours.
The market was already under pressure after the U.S. Senate blocked the CLARITY Act from advancing, adding to the selling pressure ahead of the Fed decision.
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