Zcash jumps 23% as bitcoin and major tokens rise despite Fed’s first hike since 2023

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The broader crypto rebound came after the Fed raised its benchmark rate by a quarter percentage point to a range of 3.75% to 4%.

Higher rates make borrowing more expensive and can reduce the money available for speculative investments. They also increase the appeal of interest-paying cash and government debt relative to bitcoin, which pays no income simply for holding it.

An expected increase can still be followed by rising crypto prices if investors become less concerned about how much further rates will climb. The Fed’s median projection put the policy rate at 4.1% at the end of both 2026 and 2027, consistent with one further quarter-point increase this year.

Jeff Ko, chief analyst at ViaBTC, said in an email that Wednesday’s increase was largely priced in.

“To me, the Fed is signaling that it does not currently envisage an aggressive tightening cycle, while markets appear reassured by its efforts to contain inflation.”

S&P 500 futures rose 0.6% and Nasdaq 100 futures gained 0.7%, while Asian equities added 0.3%. The two-year Treasury yield, which is sensitive to expectations for Fed policy, eased two basis points to 4.71% after reaching its highest since 2024 during the previous session.