Crypto Rallies Despite Fed Rate Hike as Bitcoin Climbs Toward $77K

The cryptocurrency market is showing strength after the U.S. Federal Reserve raised interest rates by 25 basis points. BTC climbed to $76,621 on September 17. Traders focused on the Fed’s future rate outlook rather than the rate increase itself.

The move comes as investors assess the next direction for risk assets. Ethereum and Solana also gained. However, Bitcoin’s rally is taking place alongside continued ETF outflows, showing that market sentiment remains mixed.

Bitcoin Rises as Fed Delivers Its First Rate Hike Since 2023

The Federal Reserve raised its target interest rate to a range of 3.75%–4%. This marked its first rate increase since July 2023. Bitcoin rose 0.88% over 24 hours to $76,621. The cryptocurrency also gained 0.60% since midnight UTC. Ethereum climbed 1.1% to $2,444.36, while Solana rose 2% to $100.57.

The market’s response suggests that traders were more focused on the Fed’s projections than the immediate rate hike. The Fed’s latest projections helped ease concerns about a prolonged tightening cycle. The central bank’s median policy rate forecast stood at 4.1% at the end of both 2026 and 2027. This implies only one further 25-basis-point move during that period.

That outlook gave investors a clearer picture of what could come next. For crypto markets, the reaction matters because Bitcoin often responds to changes in risk appetite. A less aggressive outlook can support confidence in riskier assets. However, the rate hike itself shows that inflation concerns remain part of the market’s thinking.

Risk Assets Move Higher Alongside Crypto

The positive mood extended beyond cryptocurrencies. The Nasdaq 100 futures gained 1.04%. S&P 500 futures rose 0.81%. Gold advanced 1.02%, while silver climbed 1.52%. The Dollar Index fell 0.17%.

The two-year Treasury yield also slipped 2 basis points to 4.71%. These moves show that the rally was not limited to Bitcoin. Investors across markets responded to the Fed’s projections. For crypto investors, this matters because broader market sentiment can influence demand for digital assets.

Despite the rally, Bitcoin’s ETF flows remain weak. U.S. spot Bitcoin ETFs recorded $295.98 million in net outflows on Wednesday. This followed $450.33 million in outflows the previous day.

The report said total outflows since September 8 had exceeded $1 billion across seven sessions. This creates a mixed picture for investors. Bitcoin prices are rising, but institutional fund flows have not yet turned positive.

The next question is whether the price recovery can continue without stronger ETF demand. The figures suggest that smaller cryptocurrencies are seeing stronger gains than Bitcoin-heavy assets.

Bitcoin Rally Faces Its Next Test

Bitcoin’s move toward $77,000 shows that investors are looking beyond the Fed’s rate hike. The central bank’s projections helped improve sentiment across crypto and traditional markets.

For investors, the focus now shifts to whether the broader market can maintain its momentum. Stronger ETF flows and continued risk appetite could support further gains. Renewed caution could bring volatility back to Bitcoin and other cryptocurrencies.

The next phase of the rally will show whether investors continue buying or return to a more cautious approach.