For the first time since July 2023, the Federal Reserve has raised interest rates. The FOMC voted unanimously September 16th to increase its target range by 25 basis points, from 3.50%-3.75% to 3.75%-4.00%. That ends a roughly 38-month stretch without a rate hike and formally puts monetary tightening back on the table.

For crypto, the hike itself may not be the most important development. Traders had days to prepare for it, and markets were already heavily positioned for a quarter-point increase. The bigger question is whether September represents one isolated adjustment or the beginning of another sustained tightening cycle. That distinction could have a much larger impact on Bitcoin, altcoins, equities, bonds, and the dollar through…