Bitcoin holds near $76.5K as US stocks rebound from Fed rate hike

Fed rate hike — Bitcoin traded near $76,500 on Thursday, making modest daily gains as US equities rebounded following the Federal Reserve’s first interest rate increase since July 2023.

Data from TradingView showed BTC price volatility cooling over the previous 24 hours, with liquidity thickening around the current spot price in a sign of rangebound trading. The S&P 500 Index gained 0.9% and the Nasdaq Composite Index rose 1.5% as investors sought to capitalize on the local dip that followed the Fed’s policy tightening.

On Wednesday, the Fed voted to increase benchmark interest rates by 25 basis points to a range of 3.75-4%, signaling an end to three years of easing. Trading resource The Kobeissi Letter suggested assets would continue to perform strongly despite the prospect of lower-liquidity conditions associated with the hikes.

Onchain analytics platform CryptoQuant described macro conditions as a hurdle to the continuation of Bitcoin’s previous rebound, which totaled 25% in August. The firm’s head of research, Julio Moreno, noted its proprietary Bull Score Index had dropped from 80 to 60, the cut-off point for what it describes as ‘bullish conditions,’ indicating the trend is ‘cooling, not turning.’