Bitcoin (BTC) traded near $76,500 on Thursday as US stocks rebounded following a recent sell-off. The recovery came after the Federal Reserve increased benchmark interest rates by 25 basis points to 3.75-4%, marking its first rate hike since July 2023 and signaling an end to three years of monetary easing.
US equities gained substantially on the day, with the S&P 500 Index rising 0.9% and the Nasdaq Composite Index climbing 1.5%. Bitcoin had initially dropped below $76,000 in response to the Fed's policy decision but stabilized as investor appetite for risk assets returned.
Price volatility in Bitcoin cooled over the 24-hour period, with only modest moves observed. Data showed both bid and ask liquidity thickening around the current spot price, a typical pattern for rangebound trading conditions. BTC/USD traded 0.5% higher on the day at the time of reporting.
Technical Outlook
CryptoQuant's Bull Score Index, a proprietary indicator tracking Bitcoin price cycles, registered 60 on Thursday—the threshold marking bullish conditions. The metric had declined from 80 in recent weeks.
According to CryptoQuant's head of research, macro conditions posed a near-term headwind to Bitcoin's previous rebound of 25% in August. The analysis identified $70,000 and the $62,000-$65,000 range as key support levels to monitor.
Central bank tightening extended beyond the US Federal Reserve. The European Central Bank had raised rates by 0.25% the previous week, while the Bank of Japan was expected to announce a decision on Friday.
