The Federal Reserve raised its benchmark interest rate by 25 basis points on Wednesday, lifting the target range to 3.75%–4.00% in its first rate increase since July 2023. The Federal Open Market Committee voted unanimously, reversing the easing path that had brought rates down to 3.50%–3.75% by the end of 2025.
Policymakers emphasized that inflation remains above the 2% target, and solid economic growth, resilient consumer spending and strong business investment supported the decision to tighten policy. CME FedWatch data had priced an 88% probability of a quarter-point hike, helping limit severe volatility across cryptocurrencies, equities, bonds and precious metals.
Before the announcement, Bitcoin traded near $75,500, down about 5% since Monday, while Ethereum had lost more than 8% over the same period. Solana was near $96 and XRP changed hands around $1.26, down roughly 15% since the start of the week. After the decision, Bitcoin climbed back above $76,000, and Ethereum, Solana and XRP each gained more than 1% as reduced policy uncertainty encouraged renewed demand for risk assets.
At the time of the market recap, Bitcoin traded at $76,270.01, up 0.7% on the day, Ethereum at $2,432.43, up 1.4%, BNB at $723.86, up 1.8%, XRP at $1.30, up 1.0%, and Solana at $99.42, up 2.8%. The global crypto market cap rose 1.0% to $2.70 trillion over 24 hours.
Treasury yields remained elevated, with the 10-year yield crossing 5% on Tuesday to its highest level since 2007 before easing toward 4.95%. Gold declined about 3.5% from early September levels, while silver recorded an estimated 4% decrease. Futures showed traders assigned about a 54% probability that the Fed would hold rates steady at its October meeting, keeping inflation, employment and spending data in focus.
Separately, Senator Tillis’ motion to reconsider kept the CLARITY Act alive after a failed vote, and Circle’s Arc mainnet launched with BlackRock and Visa participating as validators.
