Bitcoin traded near $76,500 on Thursday following the US Federal Reserve’s first interest-rate increase since July 2023, as US equities rebounded from recent losses.
The Fed voted to raise its benchmark rate by 25 basis points to a range of 3.75-4%, marking an end to three years of easing policy. The S&P 500 gained 0.9% and the Nasdaq Composite rose 1.5% after the announcement, providing a modest tailwind for risk assets including Bitcoin.
Bitcoin had dropped below $76,000 immediately following the Fed decision but consolidated near that level by Thursday’s Wall Street open, with bid and ask liquidity thickening around spot price. The price action reflected typical rangebound conditions, according to onchain data.
CryptoQuant’s Bull Score Index stood at 60 out of 100 on Thursday, down from 80 previously. Julio Moreno, head of research at CryptoQuant, characterized the near-term outlook as constrained by macro headwinds despite the broader uptrend remaining intact.
“The trend is still bullish, but momentum and macro are working against it near-term,” Moreno said.
Moreno identified $70,000 and a range of $62,000-$65,000 as key support levels to monitor. He cited fading US demand, rising altcoin inflows, and a week of macro risk as reasons for expected consolidation, noting that a Bull Score of 60 marks the threshold for bullish conditions.
“Bitcoin is cooling, not turning. A Bull Score of 60 keeps the trend bullish, but fading US demand, rising altcoin inflows, and a week of macro risk, the delay of the CLARITY Act and a likely Fed hike, argue for consolidation. Watch $70K and $62K-$65K as support,” Moreno said.
The Fed’s rate increase came as central banks globally tightened policy. The European Central Bank had hiked by 0.25% the previous week, and the Bank of Japan was expected to raise rates on Friday.
Bitcoin had rebounded 25% in August prior to the current consolidation phase. BTC/USD showed a 0.5% daily gain at the time of reporting, with volatility cooling over the preceding 24 hours.
The Kobeissi Letter, a trading resource, offered a broader perspective on asset markets following the Fed action. “The asset owner economy just keeps getting better,” the outlet stated, suggesting continued strength in traditional markets despite rate increases.
