Federal Reserve Chairman Kevin Warsh shifted the direction of US monetary policy on Wednesday, September 16, 2026. The central bank raised interest rates by 25 basis points to a range of 3.75%-4.00% in a unanimous vote - marking its first rate hike in over three years.
The decision immediately triggered a wave of selling across traditional stock markets. The Dow Jones fell 600 points, while the 10-year Treasury yield surged to 5.02%. Warsh explained that the move was made because the economy and labor market remain resilient, while inflation has stayed elevated for too long.
The sell-off deepened as institutional investor expectations shifted dramatically. The odds of two additional rate hikes before the end of 2026 jumped sharply to 40% shortly after the announcement, up from just 10% the week prior. In line with the revised outlook, Goldman Sachs projected that another rate increase could come as early as October.
Two Blows That Failed to Shake the Market
Amid intense pressure on traditional markets, crypto assets exhibited an anomalous move. Major altcoins posted double-digit gains just as traditional instruments slid. ZEC surged 12% to reach $1,350, setting a new all-time high. NEAR led the market with a 15% gain, while LIT and VVV each climbed 12%, continuing their upward momentum.
Remarkably, the resilience of these coins came right after the market absorbed two consecutive negative catalysts. Alongside facing the first interest rate hike since 2023, the crypto industry also took the hit from the Senate’s rejection of the CLARITY Act, which failed in a tight 49-50 vote.
Those two events were seemingly not enough to push prices lower. Analysts noted that digital assets have now stopped tumbling every time they are hit by a barrage of bad news. This relative strength has fueled a new narrative among market participants that the bottom is likely already in.
Pressure Shifts Back to Sellers
Signs of buyer resilience had already been evident in trading activity even before conventional markets opened. While spot markets faced a massive sell-off, pre-market stock index futures moved steadily into the green - signaling aggressive dip-buying each time the market dipped.
For traders stubbornly holding short positions, crypto’s resilience in absorbing peak macroeconomic headwinds is hardly good news. Market pressure has now turned against those betting that prices would continue to slide to new lows.
Source: Decrypt.
Read also: How to Read Candlesticks for Beginners
Read also: US Bitcoin ETFs Record $462.7 Million in Weekly Outflows - But Capital Shifts to Ethereum
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
