Bitcoin Rose 13% After Federal Reserve Rate Hike as Institutional Funds Returned

WHY IT MATTERS

The Federal Reserve (often called "the Fed") is the central bank of the United States, and when it raises interest rates, it affects the entire financial system. Think of interest rates like the price of borrowing money — when they go up, borrowing becomes more expensive, and investors often move money out of riskier assets like crypto and into safer ones like government bonds. This story is notable because it shows how large investment funds — think of them as big pools of money managed by professionals — initially followed this pattern by selling Bitcoin but then reversed course and bought back in. For someone new to crypto, this illustrates how Bitcoin's price can be influenced not just by crypto-specific news but also by decisions made by traditional financial institutions and central banks.