Bitcoin absorbs Fed rate hike as officials see more tightening

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Bitcoin showed little immediate reaction to the Fed's first rate increase since 2023, but 16 of 18 officials expect at least one more hike before the end of the year. Bitcoin held near its pre-Fed announcement levels of around $76,000 on Wednesday despite the US Federal Reserve raising its benchmark interest rate for the first time since 2023 to address persistently high inflation. Wednesday voted unanimously to raise rates by 25 basis points to a target range of 3.75% to 4%, a move that typically puts pressure on stocks and other risk assets.

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• However, Bitcoin showed little immediate reaction to the announcement and was trading at $76,663 at the time of writing, up 1.35% in 24 hours.
• Bitcoin has remained relatively resilient, holding broadly around pre-announcement levels even as equities moved lower," said Cooper Duschang, research analyst at Talos in comments shared with Cointelegraph.
• "The initial reaction suggests the Fed's decision was largely anticipated by crypto markets.