Bitcoin Near $76.5K as Stocks Rebound After Fed Hike — SkimNews
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- Bitcoin traded near $76,500 after Wall Street open, consolidating after dropping below $76,000 following the Fed's 0.25% rate hike, with BTC/USD up 0.5% on the day.
- The Federal Reserve voted Wednesday to raise benchmark interest rates by 25 basis points to 3.75-4%, its first hike since July 2023 and the end of three years in which the Fed either cut rates or held them steady.
- US equities rebounded alongside crypto, with the S&P 500 gaining 0.9% and the Nasdaq Composite Index gaining 1.5% as investors bought the dip after policy tightening.
- CryptoQuant's Bull Score Index dropped from 80 to 60 — the cut-off for what the firm calls "bullish conditions" — with head of research Julio Moreno writing, "The trend is still bullish, but momentum and macro are working against it near-term."
- Central banks globally are tightening in tandem, with the European Central Bank hiking 0.25% last week and the Bank of Japan expected to follow on Friday, while trading resource The Kobeissi Letter declared, "The asset owner economy just keeps getting better."
- CryptoQuant flagged $70,000 and $62,000-$65,000 as key support levels to watch as Bitcoin cools from its 25% August rebound amid fading US demand and rising altcoin inflows.
Why it matters: The Fed's first hike since July 2023 ended a three-year easing cycle, but the Nasdaq's 1.5% rebound and Bitcoin's rangebound action near $76,500 suggest investors had largely priced in the move. CryptoQuant's Bull Score sitting at the 60 bullish threshold and global central banks hiking in concert — ECB last week, BoJ expected Friday — leaves crypto traders watching $70K and $62K-$65K as the levels that will determine whether cooling becomes a turn.
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