Bitcoin and Ether Gained After Fed’s September 2026 Rate Hike

Bitcoin and Ether climbed in the week after the Federal Reserve raised its benchmark rate in September 2026, as crypto markets avoided a broad selloff despite tighter monetary policy.

The Fed increased the rate by 25 basis points, its first hike in more than three years. In the seven days after the decision, Bitcoin (BTC) gained 11.58% and Ether (ETH) gained 11.94%.

Higher rates can raise the yield on dollar assets and the opportunity cost of holding crypto. But the market response also depends on how a policy move compares with expectations and on available liquidity.

Bitcoin’s liquidity and institutional participation may make it more defensive during tightening. Solana (SOL), a higher-beta asset, may have greater upside potential during a recovery, while facing more pullback risk when liquidity tightens. Crypto markets moved in different directions during the Fed’s four rate increases in 2023; the sharper downturn in 2022 coincided with rapid hikes and an industry credit crisis.

If inflation and employment cool and expectations for further rate increases peak, markets may start pricing in improved liquidity. Activity could then spread from BTC to ETH and other tokens.