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An image of Bitcoin. / Reuters-Yonhap

Bitcoin has broken above the $77,000 mark despite an interest rate hike by the U.S. Federal Reserve. While higher interest rates typically weigh on risk assets like Bitcoin, analysts say the market had already largely priced in the move, and spot buying absorbed selling pressure from derivatives markets to keep prices resilient.

According to U.S. cryptocurrency exchange Coinbase on the 18th, Bitcoin traded at $77,471 as of 3:00 p.m., up 1.4% from the previous day. At the same time, Ethereum rose 1.74% to $2,482, while Solana surged 5.87% to $105.48, reflecting broader gains across major altcoins.

Bitcoin held above $76,000 following the Federal Open Market Committee (FOMC) meeting on the 16th before climbing past $77,000 on the 18th. The Federal Reserve raised the benchmark policy rate by 0.25 percentage points on the 16th to a range of 3.75% to 4.00%, marking the first interest rate hike since July 2023.

The market impact remained contained largely because the rate hike did not come as a fresh negative surprise. According to Reuters, 16 out of 18 Fed officials projected at least one additional rate hike this year. Market participants had already priced in a 25-basis-point increase well ahead of the FOMC meeting.

Consequently, investors appeared to have trimmed risk exposures prior to the rate decision. Market players preemptively reduced holdings in risk assets to brace for heightened volatility. While Bitcoin experienced brief fluctuations immediately following the FOMC announcement, it swiftly recovered to the $76,000 level.

Support from spot market buying also helped stabilize prices. According to Talos research analyst Cooper DuShuttle, roughly $82 million in net selling occurred in the Bitcoin perpetual futures market during the hour after the FOMC announcement, but the spot market saw around $15.5 million in net buying, indicating that spot demand absorbed part of the selling pressure spilling out of derivatives.

Market analysts cited the potential for further rate increases and the recovery of ETF inflows as pivotal variables shaping Bitcoin's trajectory. Julio Moreno, head of research at CryptoQuant, noted regarding short-term price movements that "the $81,700 area serves as a critical resistance level," adding that "a confirmed move above this threshold is needed to more clearly validate a shift into a new upward trend."

                                                                                                               Kim Min-ju