Fed Raises Rates 25 Basis Points for First Time Since 2023 as CLARITY Act Collapses, Bitcoin Holds Near $76K

The Federal Reserve raised its benchmark interest rate by 25 basis points on September 16, lifting the target range from 3.50%-3.75% to 3.75%-4.00%, its first hike since 2023. Fed Chair Kevin Warsh struck a hawkish tone at his press conference, saying the committee would be "hard-pressed to describe broad financial conditions as restrictive" and that the move amounted to removing a dose of accommodation. Sixteen of eighteen policymakers projected at least one additional quarter-point increase before year-end, signaling the tightening cycle is not finished.

The decision came the same day the Senate failed to advance the CLARITY Act, a bill widely seen as the next major regulatory catalyst for crypto markets. The dual blow sent Bitcoin to an intraday low of $75,064.82 on September 16 before it recovered to hold the $76,000 zone once Warsh's press conference concluded. Bitcoin was trading near $76,400 on September 17 with traders watching the $76,700 level as the key threshold for a potential range breakdown.

Traditional markets fared worse. The S&P 500 fell roughly 0.7%, the Dow dropped 1.2%, and the 2-year Treasury yield climbed to 4.734% in the same window, while Bitcoin held its ground. Analysts remain divided on the outlook, with some arguing Bitcoin's next move depends less on this single hike and more on whether the Fed follows through with further tightening. Four demand-side signals tracked by analysts are flashing warning signs despite the price recovery.