Fed hikes rates 25 bps for the first time since 2023 as Goldman shifts to an October hike call and Zcash jumps 23%; BTC price is near $76.3K still in Neutral sentiment. Bitcoin is trading at around $76.3K, up approximately 0.8% over the past 24 hours. Ethereum is trading near $2,430, with a 24-hour gain of about 1.4%. Both assets have maintained a modest recovery following the Federal Reserve’s latest interest rate decision. Market sentiment has not strengthened to the same extent. The Fear and Greed Index currently is at 50, which remains in the Neutral zone and is below last week’s reading of 69. Volatility in the derivatives market also remains elevated. Total crypto liquidations reached approximately USD 346 million over the past 24 hours. Short liquidations accounted for around USD 196 million, exceeding long liquidations of approximately USD 150 million. This indicates that the recent price recovery was accompanied by a notable reduction in short positions. Spot ETF flows for both Bitcoin and Ethereum remained weak. Bitcoin spot ETFs recorded approximately USD 296 million in net outflows during the previous trading session, while Ethereum spot ETFs posted net outflows of about USD 224 million. This leaves a visible divergence between the current price recovery and institutional spot-market flows, as ETF capital has yet to return to sustained net inflows. From a price-structure perspective, BTC has remained range-bound after moving back above $76K. The market continues to digest the rate hike and expectations for the next phase of monetary policy. ETH has also returned above $2,400 and slightly outperformed BTC over the past 24 hours. However, continued outflows from Ethereum spot ETFs remain an important factor on the capital-flow side. Following the Federal Reserve’s 25-basis-point rate hike, the target range rose to 3.75% to 4.00%. The latest economic projections also show that inflation remains above the policy target, and markets are continuing to reprice the outlook for monetary policy. Overall, the crypto market currently shows a combination of recovering prices, Neutral sentiment, weaker ETF flows, and liquidations on both sides of the derivatives market. Short-term trading activity has picked up, but key capital-flow indicators have yet to align in a clear direction.

Source: Alternative

Key News Highlights:

Federal Reserve Raises Rates by 25 Basis Points for the First Time in Three Years, Bringing the Target Range to 3.75%–4.00%

The Federal Open Market Committee unanimously approved a 25-basis-point rate increase on September 16, raising the federal funds target range to 3.75%–4.00%. This marked the Federal Reserve’s first rate hike since July 2023. The decision passed by a 12–0 vote, with every voting member supporting the increase. In its policy statement, the Federal Reserve said U.S. economic activity continued to expand at a solid pace. Domestic spending remained resilient, while productivity growth and capital investment also stayed relatively strong. Employment growth has broadly kept pace with labor-force growth, and the unemployment rate has changed little in recent months. Meanwhile, the Federal Reserve said inflation remained elevated. The latest policy adjustment is intended to support a more timely return of inflation to the longer-term 2% target. The latest economic projections place median real GDP growth for 2026 at 2.3%. Median PCE inflation is projected at 3.7%, while median core PCE inflation stands at 3.4%. For interest rates, the median federal funds rate projection for the end of 2026 is 4.1%, above the midpoint of the new policy range. The latest dot plot also shows that most officials still expect further rate increases may be needed this year. Following the decision, global financial markets began repricing the outlook for U.S. interest rates. Bitcoin remained largely around the $76K level during the adjustment.

Zcash Rises 23% in 24 Hours as the Crypto Market Rebounds After the Fed Rate Hike

Zcash rose about 23% over the past 24 hours and briefly traded near $1,369, making it one of the stronger performers among major crypto assets. Bitcoin moved back above $76K during the same period, while several other large-cap crypto assets also posted gains. Solana rose nearly 3%. BNB and HYPE gained more than 2%, while Ethereum, XRP, and Dogecoin advanced by around 1% to 2%. The move in ZEC came as markets continued to digest the Federal Reserve’s decision to raise interest rates by 25 basis points to 3.75% to 4.00%. Beyond the broader market rebound, Zcash has also attracted attention following public comments from Paradigm co-founder Matt Huang. Huang said his firm holds ZEC and described Zcash as a privacy complement to Bitcoin. One of Zcash’s core features allows users to choose whether transaction details such as the sender, recipient, and transferred amount are publicly visible. The Zcash community has also recently supported proposals designed to accelerate transaction processing while preserving its scheduled supply-reduction mechanism, which shares similarities with Bitcoin’s halving model. Huang has also publicly supported continued funding for Zcash developers and shared his views on the network’s governance structure. These developments, together with the recent price move, have placed ZEC among the more closely watched assets during the latest crypto market recovery.

Goldman Sachs Shifts Outlook and Now Expects Another 25-Basis-Point Fed Rate Hike in October

Goldman Sachs has revised its outlook for U.S. monetary policy and now expects the Federal Reserve to raise interest rates by another 25 basis points at its October meeting. This marks a shift from the firm’s previous view that the Fed would raise rates in September and then pause further increases. The Federal Reserve raised the federal funds target range to 3.75%–4.00% this week. Its latest economic projections also showed that most policymakers expect at least one additional rate increase this year. The median federal funds rate projection for the end of 2026 stands at 4.1%, which is also above the midpoint of the new policy range. Goldman Sachs updated its forecast after reassessing the latest policy statement, rate projections, and comments from Federal Reserve Chair Kevin Warsh during the post-meeting press conference. Reuters reported that Goldman now sees October as the likely timing for the next 25-basis-point increase. Market expectations have also shifted. CME FedWatch indicates that traders are pricing roughly a 50% probability of another 25-basis-point rate hike in October. These expectations can continue to change as new U.S. inflation, employment, and economic data become available, so current market pricing does not represent a final policy outcome. Goldman Sachs’ revised forecast shows that major financial institutions are reassessing the expected interest rate path for the remainder of the year following the Federal Reserve’s latest policy signals.

UK FCA Issues Final Crypto Authorization Guidance Ahead of September 30 Application Opening

The UK Financial Conduct Authority has issued final guidance on the regulatory perimeter for cryptoassets. The guidance provides further clarification on which crypto-related activities may require FCA authorization under the country’s new regulatory framework. It covers activities such as safeguarding cryptoassets, operating crypto trading platforms, arranging transactions, cryptoasset staking, and other regulated services. Under the FCA’s current timetable, the UK’s new cryptoasset regulatory regime is scheduled to take effect on October 25, 2027. Once the framework is in force, firms conducting relevant regulated crypto activities in the UK on a commercial basis will generally need the appropriate authorization unless a specific exemption or transitional arrangement applies. The FCA also stated that existing registrations and regulatory permissions will not automatically convert into authorization under the new regime. Firms will therefore need to determine whether they must submit a new authorization application or apply to extend the scope of their existing permissions. Companies seeking to use transitional arrangements may begin submitting applications on September 30, 2026. The application window will close on February 28, 2027. The guidance also applies to firms already authorized by the FCA that may require additional permissions, companies registered under anti-money laundering rules, payment service providers, and overseas firms offering crypto services to UK consumers. The FCA said it will also provide online information sessions and pre-application support to help firms prepare for the new framework. The regulator plans to consult on further changes to its perimeter guidance later in 2026 and expects to publish additional guidance in early 2027.

Disclaimer: The information provided in this section is for informational purposes only and doesn't represent any investment advice or FameEX's official view.