--- title: Crypto rallies as Fed raises rates for first time since 2023 url: >- https://www.cryptocatalyst.news/articles/2026-09-17-crypto-rallies-as-fed-raises-rates-for-first-time-since-2023 canonical: >- https://www.cryptocatalyst.news/articles/2026-09-17-crypto-rallies-as-fed-raises-rates-for-first-time-since-2023 date: '2026-09-17T19:54:05.058032+00:00' category: bitcoin tags: - crypto - fed - bitcoin - zcash - rate-hike source: CoinDesk source_url: >- https://www.coindesk.com/markets/2026/09/17/crypto-rallies-through-the-fed-s-first-rate-increase-since-2023 sources: - name: CoinDesk url: >- https://www.coindesk.com/markets/2026/09/17/crypto-rallies-through-the-fed-s-first-rate-increase-since-2023 - name: CoinDesk url: >- https://www.coindesk.com/markets/2026/09/17/bitcoin-faces-2022-parallels-as-federal-reserve-resumes-rate-hikes publisher: CryptoCatalyst summary: >- Bitcoin and Zcash surge as the Fed raises interest rates, with projections of only one more hike. Zcash jumps 23% after Paradigm's disclosure. generated_by: automated editorial pipeline --- # Crypto rallies as Fed raises rates for first time since 2023 The Federal Reserve raised interest rates for the first time since 2023, sparking a rally in crypto markets. Bitcoin rose 0.88% to $76,621, while Zcash surged 23% to a record high after Paradigm disclosed a stake in the privacy-focused coin. The Fed's projections suggest only one more rate hike, which could support further crypto gains. ## Key takeaways - The Federal Reserve raised interest rates for the first time since 2023, sparking a rally in crypto markets. - Bitcoin rose 0.88% to $76,621, while Zcash surged 23% to a record high after Paradigm disclosed a stake. - The Fed's projections suggest only one more rate hike, which could support further crypto gains. - Zcash's surge highlights the impact of venture capital firm disclosures on smaller coins. - Investors should watch the Fed's next moves and Bitcoin's price action for further signals. The Federal Reserve raised interest rates for the first time since 2023, and crypto markets responded with a rally. Bitcoin, the largest cryptocurrency by market cap, rose 0.88% over 24 hours to $76,621. Meanwhile, Zcash, a privacy-focused coin, surged 23% to a record high after venture capital firm Paradigm disclosed a stake in the asset. The Fed's projections imply that only one more rate hike is likely, which could provide a tailwind for crypto markets. ## Why the timing matters The Fed's rate hike comes at a time when crypto markets have been volatile. Bitcoin's price has been oscillating, and the recent rally could be seen as a relief rally. The Fed's projections of only one more rate hike suggest that the central bank is nearing the end of its tightening cycle, which could be positive for risk assets like crypto. However, the move also draws parallels to March 2022, when the Fed's first hike preceded a prolonged downturn for Bitcoin, raising questions over whether a relief rally could precede further losses. ## What it means if you hold Bitcoin or Zcash For Bitcoin holders, the recent rally could be a sign of further gains. However, it's important to note that Bitcoin's price has been volatile, and past performance is not indicative of future results. For Zcash holders, the surge in price after Paradigm's disclosure is a positive sign. However, it's important to remember that Zcash is a smaller coin and can be more volatile than larger coins like Bitcoin. ## What to watch next Investors should keep an eye on the Fed's next moves. If the central bank signals that it's done with rate hikes, it could be a positive sign for crypto markets. Additionally, investors should watch for any further disclosures from venture capital firms like Paradigm, as these can have a significant impact on smaller coins like Zcash. Finally, keep an eye on Bitcoin's price action. If it continues to rally, it could be a sign of further gains for the crypto market as a whole. For more on how Bitcoin has reacted to Fed rate hikes in the past, see our article on [Bitcoin's reaction to the Fed's first rate hike since 2023](/articles/2026-09-16-federal-reserve-raises-interest-rates-for-first-time-since-2023-bitcoin-reacts). And for a deeper dive into Bitcoin's supply metrics, check out our coverage of [Bitcoin supply metrics signaling a potential bear market end](/articles/2026-07-03-bitcoin-supply-metric-signals-potential-bear-market-end). ## FAQ ### What was the Fed's rate hike and how did it impact crypto? The Fed raised interest rates for the first time since 2023, which sparked a rally in crypto markets. Bitcoin rose 0.88% to $76,621, and Zcash surged 23% to a record high. ### Why did Zcash surge after Paradigm's disclosure? Zcash surged 23% to a record high after venture capital firm Paradigm disclosed a stake in the privacy-focused coin, highlighting the impact of such disclosures on smaller coins. ### What should investors watch next in the crypto market? Investors should keep an eye on the Fed's next moves, any further disclosures from venture capital firms, and Bitcoin's price action for further signals. ### How has Bitcoin reacted to Fed rate hikes in the past? Bitcoin's reaction to Fed rate hikes has been mixed. In the past, it has experienced both relief rallies and further losses. It's important to watch the price action closely. ## Sources This article synthesizes reporting from [CoinDesk](https://www.coindesk.com/markets/2026/09/17/crypto-rallies-through-the-fed-s-first-rate-increase-since-2023), [CoinDesk](https://www.coindesk.com/markets/2026/09/17/bitcoin-faces-2022-parallels-as-federal-reserve-resumes-rate-hikes), written by an automated editorial pipeline. See https://www.cryptocatalyst.news/editorial-policy. ## How to cite CryptoCatalyst.news, "Crypto rallies as Fed raises rates for first time since 2023", 2026-09-17, https://www.cryptocatalyst.news/articles/2026-09-17-crypto-rallies-as-fed-raises-rates-for-first-time-since-2023