After consolidating through a 25-basis-point rate hike, Bitcoin pulled back modestly, while US stocks recovered. The Nasdaq Composite Index rose 1.5%, and the S&P 500 Index advanced 0.9%. The shift followed a rise in the US Federal Reserve’s benchmark interest rate to 3.75-4%, up from 0.25%, marking the first such increase since July 2023. It brought an end to three years during which the central bank either reduced rates or kept them steady between meetings. That string of cuts and holds has now come to an end.
Bitcoin Holds Near $76,500
After Thursday’s opening on Wall Street, Bitcoin (BTC) was trading near $76,500. According to data from TradingView, BTC price volatility had cooled over the past 24 hours, leaving only minor movements to test nearby liquidity. BTC/USD is consolidating on the one-hour chart after slipping below $76,000, a move tied to the rate hike. Bid and ask liquidity have both grown denser around the present spot price, which is common during periods of rangebound trading.
Stock Market Rebound After the Hike
The US stock market rose on the day, with investors looking to take advantage of the losses that followed policy tightening. Both the Nasdaq Composite Index and the S&P 500 Index were among those moving upward.
A trading resource known as the Kobeissi Letter pointed out that assets were expected to keep performing well even as liquidity grew tighter due to the rate hikes. It noted that “the asset owner economy just keeps getting better,” citing the Nasdaq’s rise on that particular day.
The global trend in central-bank rates is upward, with the European Central Bank raising its rate by 0.25% last week, a move that sets the stage for further action from other major banks, including the Bank of Japan, which is expected to follow suit on Friday.
CryptoQuant’s Bull Score Drops
CryptoQuant’s Bull Score Index circled 60/100 on Thursday, down from 80. Head of research Julio Moreno noted that the drop from 80 to 60 marks the cut-off point for what the platform describes as “bullish conditions.” “The trend is still bullish, but momentum and macro are working against it near-term,” Moreno wrote in its latest weekly report sent to Cointelegraph.
The argument was that the cooling represents a pause rather than a turn, and “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,” offered that summary.
Bitcoin’s Recent Low Point
Tuesday saw Bitcoin fall to new month-to-date lows before finding relief. At the time of writing, BTC/USD was trading 0.5% higher on the day. A period of price swings linked to the rate increase gave way to a recovery. The reaction was not uniform: while Bitcoin cooled, stocks moved up.
Related News
Three months after paper losses first appeared, Cointelegraph reported that Bitcoin treasuries had purchased only 5.9K BTC.
Key Facts Box
- Bitcoin (BTC) traded near $76,500
- US Federal Reserve raised rates by 0.25% to 3.75-4%
- First hike since July 2023
- Nasdaq Composite Index gained 1.5%
- S&P 500 Index gained 0.9%
- CryptoQuant’s Bull Score Index circled 60/100
- Bull Score cut-off for bullish conditions is 60
Despite the continued positive outlook for the market, the current state of macroeconomic conditions points toward a period where prices may stabilize rather than continue their upward trend. The market has found some breathing room, thanks to a stock rebound that has helped it hold its position.
Source material: “Bitcoin coils near $76.5K as US stocks rebound from Fed rate hike,” Cointelegraph.
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