Crypto Markets Rally Despite Fed’s First Rate Hike Since 2023
What happened: The Federal Reserve raised its benchmark interest rate by 25 basis points to a 3.
What happened: The Federal Reserve raised its benchmark interest rate by 25 basis points to a 3.75%–4% target range, marking its first hike since July 2023. The FOMC vote was unanimous, and Chair Kevin Warsh signaled that inflation remains a concern, but the central bank’s projections implied only one more hike this cycle. Bitcoin rose 0.88% to $76,621, while 94 of the CoinDesk 100 constituents ended higher. Zcash led gains among major tokens, and the CoinDesk 80 index outperformed large caps with a 4.7% gain.
Why it matters: Despite a hawkish tone from the Fed—Fortune highlighted the absence of projected rate cuts through 2027—crypto markets responded positively, suggesting that the tightening path is already priced in. This resilience contrasts with previous cycles where rate hikes triggered sharp risk-off moves. The breadth of the rally indicates robust risk appetite, with privacy coins and tokenization narratives attracting particular attention.