The Federal Reserve delivered a 25-basis-point rate hike and signaled further tightening through 2026, dampening sentiment for Bitcoin as investors weigh higher yields on government debt.
Federal Reserve raised rates by 25 bps and projected another hike in 2026, increasing pressure on Bitcoin and risk assets.
The Federal Reserve unanimously raised interest rates by 25 basis points to a range of 3.75%–4.00%, marking the first hike since July 2023. Policymakers signaled a hawkish path forward, with projections indicating an additional rate increase by 2026 to combat persistent inflation, placing renewed downward pressure on Bitcoin and broader risk assets.
Higher interest rates generally increase the yield on government debt, making risk assets like Bitcoin less attractive to investors and tightening overall financial conditions.