Bitcoin holds $76.5K as US stocks rally on Fed rate hike
In brief
- Bitcoin traded near $76,500 after Fed raised rates 25 basis points to 3.75-4%
- S&P 500 gained 0.9%, Nasdaq jumped 1.5% following the rate hike announcement
- BTC volatility cooled with modest daily moves and thickened bid-ask liquidity
- CryptoQuant Bull Score Index dropped to 60, signaling fading momentum
Markets digest rate hike
The S&P 500 gained 0.9% on the day, while the Nasdaq Composite jumped 1.5%, signaling risk appetite returned after the central bank's decision. Bitcoin also enjoyed relief after falling to new month-to-date lows on Tuesday. BTC/USD traded 0.5% higher on the day at time of writing.
Volatility cooling, momentum fades
Price action remained subdued. Data showed BTC volatility cooling over the last 24 hours with only modest moves, while bid and ask liquidity thickened around the current spot price, a typical feature of rangebound trading conditions. This consolidation follows Bitcoin's 25% rebound in August, but momentum indicators suggest caution ahead.
Julio Moreno, head of research at CryptoQuant, noted that the Bull Score Index had dropped from 80 to 60, signaling fading near-term strength even as the broader trend remains intact.
"The trend is still bullish, but momentum and macro are working against it near-term." — Julio Moreno, head of research at CryptoQuant
Global rate cycle shifts
The Fed's move isn't isolated. The European Central Bank hiked rates by 0.25% last week, and the Bank of Japan is expected to hike on Friday. A synchronized tightening cycle typically pressures risk assets, though Bitcoin's near-term consolidation may simply reflect market participants pricing in the shift.
