Bitcoin Slips After Fed's First Rate Increase Since 2023

The Federal Reserve lifted its benchmark rate by 25 basis points on Wednesday, taking the federal funds target range to 3.75%–4%. All 12 voting members of the FOMC backed the move, the first rate hike since July 2023. With markets largely priced for the decision ahead of time, the initial response across risk assets was muted. Fresh guidance came through the Fed's updated projections. Sixteen of 18 policymakers now see another 25-basis-point increase in 2026, with the median path putting the policy rate at 4%–4.25% by year-end. Officials also expect rates to hold at that level through 2027. The central bank raised its 2026 inflation forecast to 3.7%, lifted its growth outlook to 2.3%, and trimmed its unemployment projection to 4.1%, reinforcing an effort to curb inflation while keeping the labor market resilient. Bitcoin hovered near $75,580 ahead of the announcement and stayed under pressure afterward. BTC was last around $75,756, down 4.2% over the past seven days. Treasury yields have firmed alongside expectations for tighter policy, with the 10-year yield recently moving above 5%, adding strain to risk assets. Traders are now looking to Fed Chair Kevin Warsh for further signals and to gauge whether additional tightening may be needed as inflation remains elevated. Related: Fed Decision Could Decide Gold’s Next Move: Will XAUUSD Reject $4,355 or Break Above $4,388? Advertise here Disclaimer: The information presented in this article is for informational and educational purposes only and does not constitute financial advice. Coin Edition is not responsible for losses stemming from the use of any content, products, or services referenced. Readers should exercise caution before taking any action related to the company.