Bitcoin, Ethereum, XRP Price Today Climbs After Fed Rate Increase

The Bitcoin, Ethereum, and XRP prices today climbed even as the Federal Reserve raised interest rates for the first time since 2023, an outcome that would once have been read as a headwind for risk assets.

The Fed lifted its benchmark rate by a quarter point Wednesday, to a range of 3.75% to 4.00%, citing persistent inflation despite continued economic growth.

Bitcoin dipped ahead of the decision, then climbed back above $76,000 within minutes of the announcement. Ethereum held above $2,400. XRP traded near $1.30, up roughly 1.4% on the day.

The muted reaction underscores a dynamic increasingly familiar to crypto traders: when a policy move is well telegraphed, the announcement itself tends to matter less than what markets did in the days beforehand.

A Well-Telegraphed Hike Blunts the Market Reaction

Positioning, more than the decision itself, appears to explain the move.

Interest rate futures tracked by the CME's FedWatch tool had assigned a 92.50% probability to the hike in the hours before the announcement. Traders had largely squared their positions in advance.

Bitcoin fell to around $75,350 ahead of the decision. Once the Fed confirmed the increase, the price rose past $76,100 within minutes, touched $76,500 after US markets closed, and settled near $76,138.

Analysts describe this as a familiar pattern: when an outcome is already priced in, the announcement itself often produces a smaller reaction than the run-up to it.

A Difficult Week Preceded the Fed's Decision

The market had already absorbed a difficult week before the Fed met.

The CLARITY Act, legislation intended to settle which federal regulator oversees digital assets, failed in the Senate. The setback alone triggered more than $300 million in liquidated leveraged positions.

CoinGlass data show 84,956 traders were liquidated over the following 24 hours, with total liquidations across the broader crypto market reaching $341.08 million.

US spot Bitcoin ETFs recorded roughly $450 million in net outflows, and Ethereum ETFs saw comparable withdrawals. Bitcoin and Ether ETFs combined lost $592 million on September 15, their worst single day of outflows in months.

By the time Fed Chair Kevin Warsh addressed reporters, much of the market's excess leverage had already been cleared, leaving fewer positions vulnerable to a sudden move.

Where Prices Stand

Officials Signal More Tightening Ahead

Its own projections suggest otherwise.

Updated Fed forecasts show 16 of 18 policymakers now anticipate at least one additional 25-basis-point increase before the end of 2026, up sharply from nine officials in June.

The rate decision itself passed by a unanimous 12-0 vote, and the accompanying statement struck a measured tone. Higher rates typically improve returns available on bonds and cash, drawing capital away from riskier assets such as crypto.

That same pressure is weighing on traditional markets, where 5% Treasury yields have become a growing concern for equities and other speculative assets.

As per SoSoValue, ETF flows on Thursday reflected the caution. US spot Bitcoin ETFs recorded $296 million in net outflows on Sept. 16, while spot Ether ETFs shed another $224 million, bringing combined daily outflows across the two categories to roughly $520 million.

Morgan Stanley's MSBT was an exception, posting $3.47 million in net inflows even as BlackRock's ETHA recorded the day's largest single Ether ETF redemption, at $110 million. XRP ETFs drew a modest $3.50 million in inflows, led entirely by Franklin Templeton's fund.

Key Levels for Bitcoin, Ethereum and XRP

For Bitcoin, $75,000 remains the level to watch. Its ability to hold above that mark through both the CLARITY Act setback and the Fed decision suggests sellers have not yet forced a deeper breakdown.

Ethereum is contending with the $2,434 to $2,440 zone, which aligns with its 20-day moving average. A daily close below that range could open the way to $2,300 to $2,320. A strong close above $2,570, by contrast, could bring $2,700, and potentially $3,000, into view.

XRP has found support near its 0.382 Fibonacci retracement level and is consolidating. A break above $1.40 could open a path toward $1.60 to $1.70, while a daily or weekly close below $1.29 would put $1.00 back in focus.

Gold Shows a Parallel Pattern

Crypto was not the only market recalibrating around the Fed. Gold spiked toward $4,360 immediately after the announcement, then retreated to settle between $4,280 and $4,300.

The round trip points to quick profit-taking rather than any deeper alarm among investors.

Risks Remain Despite the Calm

Wednesday's muted reaction does not mean the market is in the clear. The CLARITY Act debate could resurface in Congress at any point.

Altcoin performance, meanwhile, is not always tethered to Bitcoin. Zcash rallied more than 20% over seven days even as XRP slipped over the same stretch.

That divergence is a reminder that coin-specific narratives can outweigh the broader macro backdrop.

For now, the market's attention is split between the Fed's next move and whether lawmakers revisit crypto regulation before year-end.

Disclaimer

This article is for informational purposes only and should not be taken as financial or investment advice. Cryptocurrency markets are highly volatile, and prices can rise or fall sharply within short periods. Always do your own research and consult a licensed financial advisor before making any investment decisions.