Bitcoin briefly moved above $81,000 on Wednesday before giving back part of the advance as traders assessed the Federal Reserve’s interest-rate decision against persistent inflation and higher energy prices. The cryptocurrency later traded near $80,600, while ether, solana and XRP were little changed. Hyperliquid, dogecoin and Chainlink gained more than 1%.
The decision passed 10-2, with Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack voting for a quarter-point increase. Officials said inflation remained elevated and that more information would help determine the appropriate policy stance.
Chair Kevin Warsh offered little guidance on the next meeting but said credit conditions had tightened for some businesses and households. He also said energy and related prices had risen again, creating a risk that higher costs could spread through the broader economy. Most investors still expected a quarter-point increase at the Fed’s December meeting, though the October decision left that outcome unsettled.
The policy decision produced mixed moves across markets. Oil rose about 2%, adding to the inflation pressure confronting central banks. The Bank of Canada separately raised its benchmark overnight rate by 25 basis points to 2. 5%, citing inflation that was higher and more persistent than projected in its July report and an economy expected to recover further.
Bitcoin’s advance also followed a broader technology-stock rebound in Asia.
The market update also cited Bitwise’s estimate that institutions could allocate 1% to 5% of an estimated $147 trillion in assets to bitcoin over the next decade, implying potential demand of $1. 5 trillion to $7 trillion. Bitwise said bitcoin’s 50% decline from October 2025 through June 2026 was smaller than earlier bear-market losses of at least 77%, and linked its higher outlook to institutional adoption, regulatory progress and demand for scarce assets.
The Fed will continue holding eight policy meetings in 2027, but one will focus on longer-term monetary policy without a federal-funds-rate vote or policy statement. Warsh said two such strategy-focused meetings were expected in 2028. For bitcoin traders, the immediate focus is whether incoming inflation, employment and growth data will reinforce expectations for a December hike or preserve the pause signaled by Wednesday’s decision.