The Federal Reserve has raised interest rates by 25 basis points after Wednesday’s FOMC (Federal Open Market Committee) meeting. While many anticipated the cryptocurrency market to face a correction in the event of an interest rate hike, the developing pattern is quite contrary. CoinGecko data shows that Bitcoin (BTC) has rallied by 0.5% in the last 24 hours. Let’s discuss why Bitcoin (BTC) is not going down despite the Federal Reserve raising interest rates.
Why Is Bitcoin Not Going Down Despite Interest Rates Going Up?
![How Long Will Bitcoin Be Down]](https://watcher.guru/news/wp-content/uploads/2026/07/Bitcoin-down.jpg)
One possible reason why Bitcoin (BTC) has gained in the last 24 hours instead of facing a correction is that the asset already faced a correction on Wednesday on account of the CLARITY Act not passing through the US Senate. BTC faced a steep dip, falling to the $75,000 price level. It is possible that investors have exhausted the selling pressure.
Also Read: Crypto Market Crashes After CLARITY Failure: More Risk Ahead
Another reason for Bitcoin (BTC) not dipping today could be that investors had already priced in an interest rate hike earlier this month after Federal Reserve Chair Kevin Warsh delivered a hawkish speech at the Jackson Hole meeting. Warsh highlighted rising inflation and investors saw the signs that we may get an interest rate hike.
Will The Asset Recover?
Bitcoin (BTC) has had a tough year in 2026, albeit there have been some sporadic upswings. A major reason behind BTC’s lackluster performance is low risk appetite among investors arising from global geopolitical tensions and poor economic conditions.
Many experts anticipate the trend to change later this year. Bernstein analysts predict Bitcoin (BTC) to reclaim the $100,000 price level by the end of 2026. BTC hitting $100,000 could trigger another bull run for the cryptocurrency market.
Moreover, Bitcoin (BTC) has historically followed a four-year pattern. BTC has climbed to new all-time highs in 2017, 2021, and 2025; after every four years. Many expect the trend to continue into the future. Going by that assessment, BTC could hit a new peak sometime in 2029. However, the bullish momentum for a 2029 all-time high could start sometime in 2027.