Bitcoin traded below $76,000 this week as the US Federal Reserve raised its policy rate by 25 basis points, pushing the benchmark range to 3.75-4%. This marked the Fed’s first rate increase since July 2023 and ended a three-year period of loose monetary policy.
Fed rate hike impacts crypto and equity markets
Markets responded immediately after the decision, with Bitcoin reaching new monthly lows before recovering slightly. As of Thursday, Bitcoin stabilized with modest gains, climbing back 0.5% after the initial drop. On short-term charts, price volatility significantly declined, with only marginal moves recorded on the hourly timeframe, according to TradingView data.
CoinGlass data showed higher liquidity in BTC spot order books, reflecting increased bid and ask activity—a typical sign of range-bound market conditions. Despite tightening in monetary policy, traditional equity markets remained resilient. The S&P 500 advanced 0.9%, and the Nasdaq grew by 1.5% on the session.
The Kobeissi Letter, a financial analysis platform, noted that asset holders seemed shielded from restrictive policies, citing the Nasdaq’s performance as evidence. Elsewhere, major central banks continued the tightening trend. The European Central Bank raised rates by 0.25% last week, while the Bank of Japan is expected to announce its own hike soon, leading to synchronized policy actions across leading economies.
CryptoQuant Bull Score at critical level, macro risks elevated
Analytics platform CryptoQuant observed its Bull Score Index falling from 80 to 60, now hovering at the platform’s threshold for a bullish market classification. This index is designed to gauge Bitcoin’s price cycle strength and potential direction change.
Julio Moreno, head of research at CryptoQuant, emphasized in a weekly brief that while the overall trend remains positive, near-term headwinds include weakening US demand for Bitcoin and increasing capital flows into altcoins. He also pointed to the delay of the CLARITY Act and the latest Fed decision as contributing factors in the current period of price consolidation.
Moreno’s analysis highlighted two critical support levels: $70,000 and a broader range between $62,000 and $65,000, which could be significant in the coming weeks. After posting a 25% surge through August, Bitcoin entered a consolidation phase, with macroeconomic risks putting pressure on further upward movement.
At the end of the week, CryptoQuant’s Bull Score remained at 60 out of 100, signaling the market’s vulnerable but still bullish technical status.
Analyst outlook, tech solutions for traders
Cryptocurrency analyst Killa (@KillaXBT) suggested that Bitcoin may need to establish a higher low before attempting a move toward $90,000. He expects prolonged range-bound trading and does not foresee an immediate breakout. According to his view, Bitcoin could revisit the low $70,000 region as a potential bottom before resuming its uptrend, describing the pattern as a classic liquidity cycle that tests trader conviction.
Moreno concluded in his analysis that Bitcoin is “cooling, not turning,” noting that a Bull Score of 60 maintains the bullish classification, but fading demand and increased altcoin inflows, coupled with macroeconomic uncertainty, present significant challenges over the near term.
In fast-evolving conditions, where decisions from the Fed or new altcoin listings can quickly impact portfolios, traders face the challenge of monitoring multiple platforms for price charts, news, and market updates. To address this, many have turned to privacy-focused solutions such as CryptoAppsy. The platform provides real-time price data, smart alerts, coin-specific news, and macroeconomic indicators on a single dashboard, with no account registration required.
