Morning Minute is a daily newsletter written by Tyler Warner for Decrypt. The analysis and opinions expressed are his own and do not necessarily reflect those of Decrypt.

Crypto markets rebounded on Wednesday after the Federal Reserve delivered its first interest rate increase in more than three years, lifting bitcoin back above $76,000 and sending a range of altcoins sharply higher.

The Federal Open Market Committee raised rates by 25 basis points, taking the target range to 3.75% to 4.00%. The vote was unanimous. During the press conference that followed the decision, Kevin Warsh noted that the economy is resilient and the labor market is strong, but that inflation is too high and has been for too long.

Market expectations shifted quickly in the aftermath. Odds of two more rate hikes by the end of 2026 jumped to 40%, up from 10% just a week earlier — a sharp swing that keeps the Fed's next moves in focus for markets. Equities sold off in the wake of the announcement, with the Dow falling 600 points and the 10-year Treasury yield jumping to 5.02%, though stock futures pointed higher in pre-market trading.

Crypto's reaction was short-lived. Bitcoin sat at $75,700 immediately after the decision before grinding higher to $76,300. ETH and SOL were both green at $2,430 and $100, respectively, while Hyperliquid gained 1% to $80.

Altcoins were the standout performers. ZEC jumped 12% to $1,350, a new high, while NEAR rallied 15%, LIT climbed 12%, and VVV extended its rally with a further 12% gain. The moves widened in later trading, with NEAR up 18%, LIT up 14%, and ZEC at $1,360.

Writing in the newsletter, Warner argued that crypto absorbed its first rate hike in three years without flinching, which he said sounded like strength and mostly meant the pain had been taken in advance. He noted that crypto had taken a back-to-back beating, with the rate hike arriving immediately after the Clarity Act failed to pass on Tuesday. In his assessment, the crypto market is no longer going down on bad news, altcoins are showing real strength and signs of a risk-on bid, and there are real signs that the bottom is behind the market. Bears, he wrote, are on notice.

Macro Crypto and Markets

• Crypto majors were green and rebounding after the FOMC's 25 basis point hike, with BTC at $76,400; ETH +1% at $2,440; SOL +3% at $100; HYPE +3% at $79.7; and ZEC +12% at $1,360.
• Top alt movers included NEAR (+18%), LIT (+14%), and VVV (+12%).
• Oil fell 3% to $100; gold slipped 0.4% to $4,370.
• Stock futures rose after the rate hike and afternoon selloff, with the Dow up 0.8% and the Nasdaq up 1.1%.

Policy and Regulation

The House Financial Services Committee advanced the American Reserve Modernization Act in a 28-21 party-line vote. The bill gives the Treasury Department 180 days to stand up a Strategic Bitcoin Reserve and locks deposited bitcoin for 20 years, with no purchase authority.

Less than a day after the Clarity Act died, the House Ways and Means Committee advanced the Digital Asset Tax Certainty Act 38 to 5. The measure exempts network fees of $10 or less, extends wash-sale rules to crypto, and sets treatment for stablecoins, lending, mining, and staking.

Both bills remain early in the legislative process: each cleared committee only, and either would still need passage by the full House and Senate before becoming law.

With the Senate having blocked the Clarity Act, SEC Chair Atkins and CFTC Chair Selig both said they will write rules without Congress. Selig said the CFTC is "locked in and ready to ship," while Atkins told investors to "stay tuned."

Funding, Security and Development

Crypto venture capital deployed $5.68 billion across 384 deals in Q2, up 31% quarter over quarter, though later-stage rounds took 78% of the dollars and only five new funds closed — the fewest since 2019.

The hackers behind the Revolut breach demanded 6,000 XMR — about $3 million — within 24 hours, threatening to sell data from at least 680 accounts they selected using blockchain analysis.

Bitcoin Core 32 entered final testing ahead of an October release, bringing faster validation, fee changes, and security fixes.

Just 290 people worldwide hold $100 million or more in crypto — including 23 billionaires and 135,694 millionaires — against roughly 742 million total holders, according to Henley & Partners' Crypto Wealth Report 2026, underscoring how concentrated crypto wealth remains.

Corporate Treasuries and ETFs

Bitcoin ETFs saw $295 million in net outflows on Wednesday, while ETH ETFs recorded $224 million in outflows. The outflows stood in contrast to the day's broader rebound, which carried bitcoin back above $76,000.

Meme Coins and Ecosystem Movers

Meme leaders were green: DOGE was flat, SHIB rose 3%,PE gained 4%, PENGU added 5%, TRUMP climbed 4%, and SPX slipped 1%.

Robinhood Chain leaders were mostly green and rebounding. Pons rose 10% to $440 million, AI gained 3% to $282 million, and Cashcat jumped 29% to $200 million, while Musebook (+220%), Robin (+150%), ZZZ (+50%), and Wallet (+44%) led the top movers.

Solana's top movers were led by Paid (+200%), Eloncoin (+180%), and Ember (+50%). The Stonk ecosystem rallied as Stonk rose 25% to $180 million, ZCAT gained 36% to $140 million, wifout surged 500x to $4 million, jubjub climbed 400%, and Knots added 70%.

Tokens, Airdrops and Protocols

Hyperliquid led on-chain protocols in daily revenue with $2.21 million, followed by Pump with $1.68 million. Stonkfun ranked eighth with $665,000, and Pons was ninth with $656,000.

Robinhood Chain launchpads saw just $400 million in volume on Wednesday, their lowest day since August 29. Circle's Arc chain processed more than $400 million in volume on its first day live.

NFTs

NFT leaders were slightly green, with Punks flat at 29.3 ETH, BAYC up 1% at 6.85 ETH, and Pudgy up 2% at 3.43 ETH. Rekt Tradooor (+80%) and Stonkbrokers (+16%) led the top movers.

Source: Decrypt — Morning Minute: Crypto Rebounds After The Fed's First Hike Since 2023