The Federal Reserve raised interest rates by 25 basis points on Wednesday, setting a new target range of 3.75% to 4.00%. This decision, reached by a unanimous vote, marks the first rate hike in over three years. Following the announcement, the probability of two additional rate increases by the end of 2026 rose to 40%, compared to 10% just one week prior.
Financial markets reacted to the news with a sell-off, as the Dow Jones index dropped 600 points and the 10-year Treasury yield climbed to 5.02%. Despite this volatility, cryptocurrency markets showed resilience. Bitcoin recovered from an immediate dip to $75,700, climbing to $76,300. Ethereum and Solana also saw gains, trading at $2,430 and $100 respectively.
Altcoins demonstrated significant momentum during the session. ZEC reached a new high of $1,350, marking a 12% increase. Other assets also posted double-digit growth, with NEAR rising 15%, while LIT and VVV both gained 12%. Market projections from Myriad suggest an 84% probability that Bitcoin will trade between $76,000 and $78,000 today.
