Bitcoin Trades Near $76,500 as US Stocks Recover After Federal Reserve Rate Hike

WHY IT MATTERS

The Federal Reserve is the central bank of the United States, and when it raises interest rates, it makes borrowing money more expensive across the economy. Think of it like a thermostat for economic activity — raising rates is meant to cool things down. This matters for crypto because Bitcoin and other digital assets are often treated by traders as 'risk assets,' similar to tech stocks. When interest rates go up, some investors pull money out of riskier investments and move it into safer ones like government bonds, which now pay higher returns. The fact that Bitcoin held near $76,500 while stocks rebounded shows how interconnected crypto markets have become with traditional financial markets.