The Federal Reserve left interest rates unchanged on Wednesday, holding the federal funds rate at 3.75%–4.00%, and Bitcoin climbed to $81,000 after the decision as markets moved to fully price in a rate hike at the central bank’s December meeting, according to CoinDesk.
Summary
- The Fed held rates at 3.75%–4.00% on Wednesday in a 10–2 vote, with Governor Lisa Cook and Cleveland Fed President Beth Hamack dissenting.
- The statement said economic activity is “expanding at a strong pace” and that “inflation remains elevated.”
- Bitcoin climbed to $81,000 after the decision, while the 10-year Treasury yield rose 4 basis points to 5.025%.
- Markets now fully price in a hike at the Fed’s next meeting in early December; U.S. spot Bitcoin ETFs had taken in $176 million on Tuesday.
The hold itself was widely expected — a Reuters poll found 94 of 100 economists anticipated it — but the statement’s language and the two dissents gave it a hawkish tilt. All 100 economists in the poll expect an increase in December.
Yields rose as Bitcoin held its reclaim
The two-year Treasury yield rose 4.6 basis points to 4.78% alongside the 10-year’s move to 5.025%, while U.S. stocks held small gains. Bitcoin’s climb to $81,000 extended a recovery that began in Asian trading, when it rose about 2% to reclaim the level.
Spot Bitcoin ETFs supported the move: the funds took in $176 million on Tuesday, a second straight day of inflows, according to Farside Investors — a sharp reversal from last week’s $773 million two-day outflow.
Analyst Willy Woo commented on the decision and Bitcoin’s reaction on X.
December is now the meeting that matters
With October settled, attention shifts to Chair Kevin Warsh’s guidance and the December meeting, where a hike is fully priced. For Bitcoin, the test is whether it can hold $80,000 while yields push higher — the same combination that accompanied last week’s slide below that level. Warsh’s post-meeting press conference was scheduled for 2:30 p.m. ET, after the statement.
