The Federal Reserve (The Fed) has raised its benchmark interest rate\nby 25 basis points (bps) to a range of 3.75%\u20134.00% during the Federal\nOpen Market Committee (FOMC) meeting held on 15\u201316 September 2026. The\ndecision was made unanimously and marks the Fed\u2019s first interest rate\nhike since 2023.<\/p>\n
The hike did not immediately depress Bitcoin (BTC); instead, the\ncryptocurrency moved upwards from approximately US$75,400 prior to the\nannouncement to the US$76,000 area after the decision was released on\nThursday (17\/9).<\/p>\n
Indodax Chief Marketing Officer, Aloysia Dian, explained the\nreasoning behind this movement. She assessed that the response\ndemonstrates that the relationship between macroeconomic policy and\ncrypto asset prices does not always function directly.<\/p>\n
\u201cInterest rate policy remains an important factor, but it is not the\nsole driver of the crypto market. Price reactions are also influenced by\npre-existing expectations, capital flows, sentiment, and specific\ndevelopments within the crypto industry. In this instance, the rate hike\nwas widely anticipated, so much of its impact was likely reflected in\nthe price before the decision was announced,\u201d Dian explained, as quoted\nfrom her statement on Thursday, 17 September 2026.<\/p>\n
It is noted that leading up to the FOMC decision, the market had\nalready priced in a high probability of an interest rate hike. When the\nfinal result aligned with expectations, much of the pressure could be\nsaid to have been reflected prior to the announcement. In other words, a\ndecision that is widely anticipated by the market does not always result\nin additional negative reactions.<\/p>\n
Although Bitcoin strengthened following the announcement, the\ndirection of Fed policy remains a key factor for the market to monitor.\nRecent projections show that the majority of Fed officials still see the\npossibility of further rate hikes through the end of 2026. The Fed also\nraised its 2026 inflation projection to 3.7% from the previous 3.6%,\nwhile the economic growth projection was increased to 2.3%.<\/p>\n
The US central bank\u2019s focus remains on controlling inflation.\nHowever, the direction of future policy remains undecided and will\ncontinue to depend on economic data developments. Therefore, the market\nneeds to view Fed policy as one part of a broader context, alongside\nfactors such as liquidity, capital flows, sentiment, and developments\nwithin the crypto industry.<\/p>\n
According to Aloysia, these conditions mean that investors need to\nview Bitcoin\u2019s movement following the FOMC more proportionally. \u201cThe\nstrengthening of Bitcoin after the FOMC should be viewed as part of\nbroader market dynamics, rather than a sign that all risks have\nsubsided. Investors still need to closely monitor inflation trends,\nsubsequent Fed policies, institutional capital flows, and global\nliquidity conditions,\u201d she added.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bitcoin-response-following-fed-rate-hike-under-scrutiny-indodax-provides-explanation-1789665627", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }