Bitcoin's price swung before settling largely unmoved over a 24-hour period after the Federal Reserve raised interest rates — as expected — for the first time since 2023.

The leading cryptocurrency was recently priced at nearly $75,813 after dropping as low as $75,355 in the hour following the U.S. central bank's decision to increase the benchmark federal funds rate to a range of 3.75% to 4%. Over a seven-day period, the coin is down nearly 4%.

A widely telegraphed decision

Market pricing had assigned a greater than 90% probability to a rate hike heading into the Fed's September meeting, which suggests much of the significant Bitcoin trading activity took place before Wednesday. The federal funds rate — the rate banks charge one another for overnight loans — is the lever through which the central bank influences borrowing costs across the U.S. economy.

Warsh: price stability is the top priority

Addressing reporters on Wednesday, Fed Chair Kevin Warsh offered few clues about the central bank's next steps, but he made clear that price stability in the U.S. is its number one priority.

"The decision we made today was a sober decision, serious decision, responsible decision, one that we have been preparing for and thinking about in my 110 or 120 days here," Warsh said.

He added: "The plain fact is that inflation is too high, and has been for too long. This summer's inflation readings do not tell me that underlying trends have meaningfully improved."

Warsh — who has previously praised Bitcoin — said last month in his first major speech as head of the U.S. central bank that inflation was too high and had to be brought down.

At odds with the White House

The new chair appears to be steering a course against President Donald Trump's wishes. The Federal Reserve sets monetary policy independently of the executive branch, and its rate decisions do not require presidential approval — a structure designed to insulate monetary policy from day-to-day political pressure. The president has repeatedly called for lower interest rates and has even threatened to fire the ex-Chair of the Federal Reserve for refusing to do so.

In a post on his Truth Social platform last week, the president wrote: "We should have the LOWEST RATE of any country in the World, like 'the old days.'"

When asked by reporters what he would say to the president, Warsh replied: "I've got nothing for you on a discussion with the president."

The macro backdrop

Bitcoin has historically performed well in low interest rate environments, when greater liquidity is available to purchase the asset. At present, the United States is grappling with an affordability crisis, and the war in the Middle East has driven up the price of oil — compounding the problem as the cost of everyday goods climbs in the world's largest economy. Attention now turns to upcoming inflation readings and the Fed's subsequent meetings, which will shape expectations for the direction of interest rates — and, by extension, the liquidity conditions that have historically influenced Bitcoin's performance.

This article is based on reporting by Mathew Di Salvo, originally published on Bitcoin Magazine.