Bitcoin Recovers to $76,000 Despite Fed's Rate Hike Signals

Bitcoin has recovered to the $76,000 range despite the Federal Reserve's interest rate hike. Analysts attribute this recovery to the market having largely priced in the rate increase and a surge in buying activity in the spot market.

According to CoinMarketCap, as of 8 a.m. on September 18, Bitcoin was trading at $76,300, up 0.92% from the previous day.

Major altcoins also showed strength. Ethereum rose 2.16% to $2,441, while Solana jumped 3.86% to $101.23. Binance Coin (BNB) increased by 2.32% to $734.79. In contrast, Ripple (XRP) experienced a decline of 0.60%, trading at $1.29.

Despite the Fed's signals for further tightening, the cryptocurrency market has remained relatively stable. The Fed raised the benchmark interest rate by 0.25 percentage points to a range of 3.75% to 4.00% and hinted at the possibility of additional increases later this year.

Typically, rising interest rates are seen as negative for risk assets like Bitcoin, as higher rates make safer investments like bonds more attractive, potentially reducing the flow of funds into riskier assets.

However, Bitcoin's rise is believed to be due to the market having already factored in the Fed's decision. Cooper Dushan, a research analyst at the cryptocurrency trading platform Talos, told Cointelegraph, "Initial market reactions suggest that the Fed's decision was largely anticipated in the cryptocurrency market. Despite declines in the stock market, Bitcoin has maintained a relatively stable position compared to levels before the rate announcement."

While price fluctuations have been modest, changes in supply and demand dynamics have emerged within the spot and derivatives markets. Dushan noted that approximately $15.5 million in net buying has flowed into the Bitcoin spot market, indicating that spot demand has absorbed some of the selling pressure from the derivatives market.

Meanwhile, domestic Bitcoin prices also showed an upward trend. As of 8 a.m., Bitcoin was trading at 1,046,400 won on Bithumb, reflecting a 0.01% increase from the previous day. The 'Kimchi premium,' which indicates how much higher domestic prices are compared to international prices, was recorded at -0.04%.