Bitcoin held above US$76,000 on Friday morning as cryptocurrency markets absorbed the US Federal Reserve’s first interest rate increase since 2023, with traders taking some comfort from signals that an aggressive tightening cycle may not follow.
Bitcoin was changing hands at about US$76,300, little changed in recent trade, while Ethereum gained around 0.9% to US$2,438 and Solana advanced more than 2% to around US$101. XRP eased slightly to US$1.29.
The relatively muted response followed a quarter-point increase from the Fed, which lifted its target range to 3.75%-4.00%.
While higher rates would typically present a headwind for speculative assets such as cryptocurrencies, the move had been widely anticipated and the Fed’s projections suggested only one further quarter-point increase this year.
Bitcoin subsequently gained around 0.9% over 24 hours to US$76,621 during Thursday’s US session as equities also rallied. The Nasdaq finished 1.7% higher and the S&P 500 added 1.15%, while US Treasury yields retreated.
Zcash steals the spotlight
The standout mover was privacy-focused cryptocurrency Zcash, which surged around 23% to roughly US$1,369.
The rally followed comments from Paradigm co-founder Matt Huang, who disclosed that the crypto investment firm owns Zcash and discussed its potential role as a privacy-focused complement to Bitcoin.
Solana, BNB and Hyperliquid’s HYPE token also advanced, while Ether and Dogecoin recorded more modest gains.
Leverage remained elevated across the market, however, with about US$345 million of crypto positions liquidated over 24 hours during Thursday’s trading. Short positions accounted for around US$208 million of the total as prices rebounded following the Fed decision.
ETF demand cools
Institutional Bitcoin demand has provided a less supportive signal.
US spot Bitcoin exchange-traded funds recorded about US$450.4 million of net withdrawals on September 15, followed by another US$295.9 million of outflows on September 16, according to Farside Investors.
The two sessions reversed some of the US$159.9 million of inflows recorded on September 14 and suggest institutional investors remain cautious following Bitcoin’s recent pullback.
Washington shifts towards regulators
US regulation also remains firmly in focus after the Senate failed this week to advance the Clarity Act, its major attempt to establish a comprehensive federal framework for digital assets.
Attention has consequently shifted to regulators.
The Securities and Exchange Commission on Thursday unveiled its long-awaited innovation exemption, designed to provide a pathway for blockchain platforms to offer trading in tokenised securities.
The Commodity Futures Trading Commission also issued a no-action position that could give software developers greater protection from registration requirements under certain conditions.
For crypto markets, the immediate focus is now whether Bitcoin can consolidate around US$76,000 after navigating both the Fed’s rate increase and the regulatory setback in Washington.
The latest session suggests traders have so far been willing to look through both – but weaker Bitcoin ETF flows show institutional conviction has yet to fully return.