Bitcoin Rebounds Following Federal Reserve Interest Rate Hike

Bitcoin recovered quickly after the Federal Reserve implemented a 25-basis-point interest rate hike on September 16, despite initial expectations that the move would negatively impact risk-on assets. Analysts noted that the market had largely priced in the hike, and the regulatory uncertainty surrounding the CLARITY Act (US digital-asset market-structure bill) had a more significant impact on volatility than the Fed's decision. While spot BTC ETFs saw net outflows on September 15 and 16, Bitcoin demonstrated resilience compared to other assets like Ethereum and Solana. Future market performance may depend on Treasury yields, as the 10-year yield recently surpassed 5%.