Bitcoin and ether prices fluctuated sharply following the U.S. Federal Reserve’s decision to raise interest rates by 0.25%, its first increase since July 2023. Bitcoin oscillated between $75,000 and $76,500, while ether traded in a $2,370–$2,430 range, reflecting market uncertainty over the central bank’s policy trajectory.
The Federal Open Market Committee lifted the federal funds rate to 3.75%–4%, with officials including Warsh suggesting financial conditions remained accommodative enough to justify further tightening. CME FedWatch data showed a 92% probability of a 0.25% hike, down from 96% prior to the decision, as traders recalibrated expectations.
Analyst Lewis Huang of Bitget highlighted risks from persisting energy price inflation, noting that gasoline prices had risen 4% monthly while diesel hit a record high. He warned that the Fed’s continued tightening could be influenced by lingering inflationary pressures, even as initial energy-driven impulses waned.
Federal Reserve policymakers projected at least one additional 0.25% rate increase this year, though market participants remain divided on the likelihood of further hikes. The impact of recent political rhetoric on monetary policy, including remarks by Trump about interest rates, remains uncertain.
Written by Kate Harper
Economics Desk
