Bitcoin, Ethereum and XRP avoided another major crash after the Federal Reserve delivered its first interest-rate hike since 2023.
The Fed raised its benchmark rate by 25 basis points to 3.75%-4.00%, citing persistent inflation despite continued economic growth.
Bitcoin initially moved higher following the decision before settling around $76,000. Ethereum traded near $2,400, while XRP remained around $1.28.
The relatively calm reaction came after an already brutal week for crypto, with the CLARITY Act failure sending Bitcoin below $75,000 and triggering another wave of leveraged liquidations.
Why Didn't Bitcoin Crash After the Fed Hike?
The biggest reason is expectations.
Markets had already moved toward pricing in a quarter-point increase before the meeting, reducing the shock when the Fed actually delivered it.
Bitcoin had also fallen sharply ahead of the announcement as traders dealt with regulatory uncertainty, ETF outflows and rising Treasury yields.
That fits a broader pattern in which Bitcoin can react sharply to changes in interest rates and liquidity, particularly when expectations for Fed policy change suddenly.
Crypto Had Already Taken a Beating
The Fed decision arrived after substantial deleveraging across the crypto market.
More than $455 million in leveraged positions were liquidated over the previous 24 hours, while U.S. spot Bitcoin ETFs suffered roughly $450 million in net outflows. Ethereum ETFs also recorded significant withdrawals.
The failed CLARITY Act vote contributed to the pressure, with $300 million in crypto longs liquidated shortly after the Senate setback.
That meant much of the speculative excess had already been flushed out before Fed Chair Kevin Warsh spoke.
Another Fed Hike Is Now the Bigger Question
The more important signal for Bitcoin may be what happens next.
New Fed projections showed 16 of 18 policymakers expecting at least one additional 25-basis-point increase before the end of 2026.
Higher rates can create a difficult environment for crypto. They increase yields available on bonds and cash while tightening financial conditions, potentially reducing demand for risk assets.
That same pressure is hitting traditional markets, with 5% Treasury yields becoming an increasingly important risk for stocks and other speculative assets.
Bitcoin's $75K Level Is Back in Focus
For now, $75,000 remains the level to watch.
Bitcoin's ability to hold above that area following both the CLARITY Act setback and the Fed hike suggests sellers haven't yet forced another major breakdown.
But BTC still needs to recover higher resistance levels before the picture meaningfully improves.
Ethereum and XRP face a similar test. Both entered the Fed meeting already weakened by the broader selloff, leaving their next moves increasingly tied to Bitcoin, Treasury yields and expectations for the Fed's next decision.
Crypto survived Wednesday's rate hike without another immediate crash.
