Bitcoin Recovers After Fed Rate Hike
As global markets analysed the expected Federal Reserve quarter percentage rate increase, cryptocurrencies rallied over the past 24 hours. Crude oil prices and bond yields have fallen, improving market optimism. Market capitalisation rose over 1%, and Bitcoin reached 77,079 in 24 hours. The Federal Reserve unanimously raised the federal funds rate target range by a quarter percentage point to 3.75-4 percent on Wednesday. Inflation remains high, but the FOMC remains committed to price stability. In the contemporaneous Summary of Economic Projects, the Fed boosted its 2026 GDP growth forecast to 2.3 percent from 2.2 percent in June. Unemployment is now projected at 4.1 percent, down from 4.3 percent in June. PCE inflation is expected to grow to 3.7 percent in 2026 from 3.6 percent in June, according to the Fed. The core PCE is expected to rise to 3.4 percent from 3.3 percent at the June FOMC.
From June 2026 estimates, the Federal Funds rate is expected to rise to 4.1 percent from 3.8 percent. For 2027, the federal funds rate was raised to 4.1 percent from 3.6 percent in June, and for 2028, it was raised to 3.9 percent from 3.4 percent. Long-term projections have been raised to 3.2 percent from 3.1 percent. Additionally, the CME FedWatch tool, which tracks interest rate traders’ views, estimates that the Federal Funds rate will stay at 3.75-4.00 percent until 2026 at 13.7%. It was 11.7% yesterday, 29.8% last week, and 45.4% last month. Despite pricing in another rate hike before year’s end, bitcoin market mood is positive. The Bitcoin market’s Fear and Greed Index, which measures emotion, stands at 64, indicating “greed”. Crypto market capitalisation rose 1.4 percent to $2.61 trillion in 24 hours. Out of the top 100 cryptocurrencies, 75 have overnight gains over one percent and 3 have overnight losses.
The largest cryptocurrency, Bitcoin, rose 1.7 percent overnight to $76,692.28. Top cryptocurrency fell 0.5 percent last week and is down 12.4% year-to-date. On Wednesday, U.S. Bitcoin Spot ETF net outflows dropped to $296 million from $450 million on Tuesday. Top net outflows were $144 million for iShares Bitcoin Trust ETF. Market capitalisation data from companiesmarketcap.com ranks Bitcoin 13th globally. Leading cryptocurrency is between Broadcom (12th) and Tesla (14th). Ethereum is up 3.4% to $2,467.20. The leading altcoin rose 1.4 percent last week. U.S. Ethereum Spot ETF net outflows rose to $224 million on Wednesday from $142 million on Tuesday. iShares Ethereum Trust ETF overshot with $110 million outflows. According to reports, Ethereum ranks 63rd in worldwide market capitalisation.
Overnight, the fourth-ranked BNB rose 2.3 percent to $725.85. XRP, the 5th-ranked payments cryptocurrency, rose 2.4 percent overnight to $1.30. Solana, 7th, up 3.8 percent overnight to $100.57. On Wednesday, U.S. Solana Spot ETFs saw $1 million in net inflows. At $0.3341, TRON is 8th overall, down 0.07 percent. Zcash, rated 9th, rose 11.6 percent overnight, a record. Bitcoin trades at $1,392.70. Hyperliquid, rated 10th, rose 4.6 percent overnight to $81.94. The U.S. Hyperliquid Spot ETF saw $2 million in net inflows on Wednesday.
