Bitcoin Whipsaws After Fed Raises Rates 25 bps; Analysts Diverge on What's Next

Bitcoin and the broader crypto market saw choppy trading Wednesday after the U.S. Federal Reserve lifted interest rates by 25 basis points, taking the target range to 3.75%–4%. The decision was broadly anticipated, yet BTC briefly slipped below $75,000 before rebounding to about $76,400. Analysts offered mixed views on the next move. Market commentator Doctor Profit downplayed the selloff, arguing Bitcoin likely bottomed at $57,000. He said he is still holding BTC purchased between $60,000 and $64,000 and does not plan to sell. He previously identified $71,000 as a "max pain" level while keeping a bullish target of $88,000. Ali Martinez said he is bracing for another wave of selling. He highlighted Bitcoin's Short-Term Holder Realized Price around $71,200 as a key level, adding that he would treat that zone as a potential accumulation area if BTC declines further. On the sentiment side, Santiment reported a sharp pickup in social-media discussion heading into the meeting, with spikes in mentions of the FOMC, interest rates, and the 25-basis-point move. Bitcoin entered the decision under pressure. Prices had already pulled back after the prior day's CLARITY Act setback, while ETF outflows, higher Treasury yields, and liquidations added to the strain. Attention now turns to whether the hike is a one-off or the start of another tightening phase. The Fed's latest projections indicate at least one additional rate increase in 2026, keeping the policy path front and center for crypto traders. Santiment noted that many traders had been weighing more aggressive tightening scenarios. The updated projections suggest a less hawkish baseline, with another 25-basis-point hike effectively sitting at the midpoint of current expectations. For Bitcoin, the next leg is likely to be driven by shifts in expectations for future Fed policy. Cooling inflation, lower energy prices, or softer economic data could temper rate fears, while persistent inflation could reinforce them. Santiment summarized the setup: traders may have already priced in a harsher path, the first hike is now done, and one more move could be manageable if inflation starts easing. In that view, changing expectations may matter more for crypto than the 25-basis-point increase itself. Source: CryptoPotato