Bitcoin, Ethereum Rally After Fed’s Rate Hike
BTC is up 21.2% and ETH up 28.9% over the past month, even as the same rate decision sent stocks lower.
Crypto markets moved in the opposite direction of equities this month. When the Federal Reserve raised interest rates a quarter point on September 16 — its first hike in three years — the Dow and S&P 500 sold off, but Bitcoin and Ethereum both opened higher and kept climbing. BTC is now trading around $76,265, up 21.2% over the trailing month, while ETH sits near $2,433, up an even stronger 28.9%.
Why Crypto Is Decoupling From Stocks
The unanimous nature of the Fed’s vote removed a source of uncertainty that had been weighing on risk assets broadly. For crypto traders specifically, a clearly telegraphed, well-communicated hike — even a hawkish one — can be read as a green light that the central bank isn’t losing control of inflation, which supports risk appetite in digital assets even as it dents equity multiples. Massive spot Bitcoin ETF inflows earlier in the month also provided a liquidity cushion that has kept BTC holding well above the $75,000 level despite bouts of macro volatility tied to the Iran conflict and elevated oil prices.
The $2.86 Trillion Crypto Market
Total crypto market capitalization has climbed back to roughly $2.86 trillion, with Bitcoin and Ethereum’s combined strength lifting altcoins and crypto-adjacent equities alike. That includes crypto mining and infrastructure names like Big Digital Energy (BGDE), which has been one of the more volatile beneficiaries of the sector’s momentum this year — see our full BGDE fact sheet for financials, insider activity, and its 752 MW development pipeline.
For a deeper look at BGDE’s recent catalysts, including its terminated poison pill and the Endeavor Blockchain credit facility, see our previous coverage: three catalysts investors are watching right now and the BGDE surge breakdown.
What to Watch
The key risk to the current rally is the same one hanging over equities: if the Fed’s signaled follow-up hike materializes alongside tighter global liquidity, crypto’s decoupling from stocks could reverse quickly. Watch for incoming inflation data and any further guidance from Fed officials, which we’ll continue to track alongside our broader market strategy coverage.
For fact sheets on individual stocks tied to crypto infrastructure and the broader market, visit our Stock Fact Sheets hub.
This article is for informational purposes only and does not constitute investment advice. Cryptocurrency prices are highly volatile; consult a financial advisor before making investment decisions.
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