Fed Interest Rates Hike After 3 Years Hint Crypto Bull Run, Here’s Why
The Federal Reserve just did something it has not done since July 2023. On September 16, 2026, the FOMC voted 12-0 to hike Fed interest rates by 25 basis points, taking the range to 3.75%-4.00%. Rates were cut back in December 2025, so this Fed interest rates move is the first change in either direction since then. Traders braced for a red day. Instead, Bitcoin held above $76,000 while stocks fell.
Why did higher Fed interest rates, usually bad news for risk assets, end up lifting crypto instead?
Key takeaways:
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The Fed raised rates by 25 basis points to 3.75%-4.00%, its first hike since July 2023.
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Bitcoin traded above $76,000 even as stocks fell, and the total crypto market cap hit $2.7 trillion.
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Two new crypto bills cleared House committees, even after the Clarity Act failed to pass.
Why Did The Market Go Up After The Fed Interest Rates Hike?
By the numbers, this should have been a rough day for crypto. Higher interest rates usually pull money out of risk assets and into safer bonds. Yet CoinGecko data shows the global crypto market cap sitting at $2.7 trillion, up 1.0% in 24 hours, with $93.6 billion in trading volume. Bitcoin dominance stands at 56.8%, and Ethereum dominance sits at 11%, even with Fed interest rates moving higher.
Federal Reserve Chair Warsh gave a press conference on September 16. He said the economy is "strengthening." He also said he is "hard-pressed to call financial conditions restrictive." This view was widely shared across the FOMC, according to a summary from The Kobeissi Letter.
Source: Official Notice
That framing matters. If Federal Reserve does not see current conditions as tight, traders read that as a green light. Bitcoin news today reflected that relief.
Not everyone agrees with this reading. Peter Schiff argued on X that Warsh was not being fully honest. He said the Fed was "backed into a corner," with a 90% probability of a hike already priced in before the meeting started. In his words, it was "put up or shut up," and he believes the Fed "did not put up enough." His view is a reminder that this rally has skeptics, not just cheerleaders.
What Is Driving Talk Of A Crypto Bull Run?
Trader Eric on X called this "just the beginning" of a bull run. He pointed to two things on the same day. First, the Clarity Act failed to pass, according to Crypto Rover. Second, rates still went up while crypto stayed green. His argument is simple. If bad regulatory news and a rate hike cannot drag the price down, buyers are firmly in control.
Two more pieces of crypto market news add weight to that case. Bull Theory reported that two bills cleared House committees the same day:
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The American Reserve Modernization Act of 2026
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The Digital Asset Tax Certainty Act
Both bills now head toward a full House vote before they can move to the Senate.
So even though the Clarity Act stalled, lawmakers are still pushing other digital asset rules forward. That flow of legislative crypto market news is feeding the bullish mood around Ethereum news today and Bitcoin alike.
How Did The 2023 Rate Hike Compare To Today's Move?
This is not the first time interest rates hike has coincided with crypto gains. Here is how the two Fed interest rates moves stack up, based on CoinGecko figures:
| Detail | July 26, 2023 Hike | September 16, 2026 Hike |
|---|---|---|
| Total value change | $1,186,194,828,541 to $1,192,755,357,488 (+0.55%) | Total sits at $2.7 trillion, +1.0% in 24 hours |
| Bitcoin price today vs before | $29,131.43 to $29,608.76 (+1.64%) | $75,330.25 to $76,589.08 (+1.67%) |
The pattern repeats, but the scale is bigger this time. A 1.67% Bitcoin price today move on a much higher base is a larger dollar gain than the entire 2023 episode.
What Comes Next For The Fed And Crypto?
Wall Street Journal reporter Nick Timiraos reported that 16 of 18 FOMC participants see at least one more interest rates hike before 2026 ends. Few expect rates to fall below 4% by the end of 2027. That hawkish signal sits right next to a bullish crypto market news cycle, and it will not resolve overnight.
President Trump, per The Kobeissi Letter, is now calling for rates to fall to "1% or lower." The range moved from 3.50%-3.75% up to 3.75%-4.00%. That makes his ask a cut of roughly 300 basis points. The largest single-meeting cut in US history was 100 basis points, done twice, in 2008 and 2020.
Trump's request is three times that record. Q4 2026 is shaping up to be a genuine test of who is right, the Fed or the crypto bull run believers.
Expert Opinion: Analysts note that Fed interest rates rising alongside a stronger Bitcoin price today is unusual but not unheard of, as the 2023 comparison shows. The clearer driver appears to be legislative momentum, since two crypto bills advancing through House committees gives traders a reason to look past short-term rate policy. Still, 16 of 18 officials expect another Fed interest rates hike in 2026. That hawkish signal means the path ahead will not be a straight line up. Any bull run claim should be treated as one possible outcome, not a certainty.
YMYL Disclaimer: This content covers financial and monetary policy topics and is for informational purposes only. It is not financial, investment, or trading advice. Crypto assets are highly volatile, and prices such as Bitcoin price today figures can change fast. Always do independent research and speak with a licensed financial advisor before making any investment decision.
