Bitcoin traded around $76,500 during Thursday’s Wall Street session, with investors returning to US stocks following a recent decline. The price of Bitcoin stabilized after falling below $76,000 in response to a 0.25% interest rate increase by the US Federal Reserve.
Fed Rate Hike and US Market Response
The Federal Reserve raised its benchmark interest rates by 25 basis points to a range of 3.75% to 4% on Wednesday. This marked the Fed’s first rate hike since July 2023 and signaled the end of a prolonged period of loose monetary policy, during which rates were either cut or left unchanged at each meeting.
Following the rate decision, US equities showed signs of recovery. The Nasdaq Composite Index closed up 1.5%, while the S&P 500 Index posted a 0.9% gain. Analysts pointed to renewed optimism in stocks, with some expecting continued strength in asset performance despite the tightening liquidity environment caused by the rate hikes.
The Kobeissi Letter, a financial market commentary, highlighted the day’s gains for asset holders, saying the “asset owner economy just keeps getting better” as stocks advanced. The European Central Bank also raised its key rates by 0.25% last week, and the Bank of Japan was expected to make a similar move before the weekend.
Data from TradingView indicated that Bitcoin’s volatility eased over the past 24 hours, with only slight price changes accumulating liquidity near current levels. Bid and ask liquidity clustered around the spot price, a typical sign of rangebound trading conditions according to CoinGlass, a data platform tracking digital asset markets.
Trading charts reflected this period of limited volatility, with the BTC/USD pair remaining largely stable despite macroeconomic fluctuations.
Analyst Outlook: Cooling Trend for Bitcoin
Bitcoin experienced a modest recovery after falling to its lowest level of the month on Tuesday. At press time, BTC was trading approximately 0.5% higher for the day, benefitting from generally improved sentiment across risk assets.
Onchain analytics firm CryptoQuant noted that macroeconomic headwinds continued to challenge a full resumption of Bitcoin’s previous upward momentum, which saw gains of 25% in August. Julio Moreno, CryptoQuant’s head of research, pointed to a shift in Bitcoin’s price indicators in the company’s latest weekly analysis.
Moreno explained that the Bull Score Index, a proprietary tool measuring bullish market conditions, had slipped from 80 to 60. This score represents the threshold for what CryptoQuant classifies as bullish, signaling a cooling trend rather than a major reversal for Bitcoin.
In a recent assessment, CryptoQuant wrote that although “the trend is still bullish,” both momentum and macro conditions are acting as headwinds in the near term. Fading demand in the US, increased inflows into alternative cryptocurrencies, and a week filled with macroeconomic risk—including delays to the CLARITY Act and the recent Fed hike—were identified as contributing factors to the current phase of consolidation. CryptoQuant called attention to support levels for BTC at $70,000 and between $62,000 and $65,000.
CryptoQuant stated, “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.”
The Bull Score Index remains closely watched as traders assess the sustainability of the current price levels amid shifting global financial conditions.
Mini dictionary: CryptoQuant is a blockchain analytics firm that provides data-driven insights and proprietary indicators for cryptocurrency markets, helping traders and institutions assess trends and market cycles more effectively.
| Metric | Previous | Current |
|---|---|---|
| Fed rate | 3.5%–3.75% | 3.75%–4% |
| Bitcoin price | Below $76,000 (after drop) | ~$76,500 |
| Nasdaq Index daily change | Declining earlier | +1.5% |
| Bull Score Index (CryptoQuant) | 80 | 60 |
