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Bitcoin and ether whipsaw as unanimous Fed delivers first rate hike in more than three years

Twenty-five basis points, unanimous. The Federal Reserve voted to raise its benchmark rate by a quarter-point for the first time in more than three years, with every committee member in agreement. Bitcoin ($BTC) and ether ($ETH) swung…

By Kwame Asante·Sep 17, 2026·1 min read·crypto·$BTC · $ETH

Key takeaways

  • The Federal Reserve raised its benchmark rate by 25 basis points, its first rate hike in more than three years.
  • The vote was unanimous, with every committee member in agreement.
  • Bitcoin ($BTC) and ether ($ETH) swung sharply in both directions after the announcement, holding no clean move.
  • Warsh has identified inflation as the explicit policy target, and the committee now backs that framing.
  • The market's key question is whether this unanimous quarter-point move signals a sustained tightening path.

Twenty-five basis points, unanimous. The Federal Reserve voted to raise its benchmark rate by a quarter-point for the first time in more than three years, with every committee member in agreement. Bitcoin ($BTC) and ether ($ETH) swung sharply in both directions on the announcement.

The unanimity carries weight beyond the increment. A divided vote at the first hike after a prolonged hold would have introduced ambiguity about the Fed's confidence in its own direction. A full-house result closes that gap. Warsh has pointed explicitly at inflation as the policy target, and the committee now stands behind that framing.

For $BTC and $ETH, the whipsaw pattern after the decision is a read on positioning. Neither digital asset held a clean move in either direction. The quarter-point increment is a minimum step; what the market is working out is whether this unanimous opening move maps to a sustained tightening path.

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Source: theblock.co
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Frequently asked

How much did the Fed raise interest rates?

The Fed raised its benchmark rate by 25 basis points, a quarter-point increase.

Was the Fed's rate decision unanimous?

Yes, every committee member agreed on the quarter-point hike, producing a unanimous vote.

How did Bitcoin and ether react to the announcement?

Both $BTC and $ETH whipsawed sharply in both directions and did not hold a clean move in either direction.

Why does the unanimity of the vote matter?

A unanimous vote at the first hike after a prolonged hold removes ambiguity about the Fed's confidence in its direction, unlike a divided vote would have.

What is the Fed's stated policy target?

Warsh has pointed explicitly at inflation as the policy target, and the committee stands behind that framing.