Goldman Sachs reverses Fed call twice in four days, sending ripples through Bitcoin and XRP markets
Goldman Sachs revised its Fed rate hike forecast twice in four days, initially expecting one hike then predicting another in October. The Fed raised rates to 3.75%-4.00% in September 2026, with 16 of 18 policymakers signaling another hike by year-end. Bitcoin gained 0.5% post-announcement, trading at $76,000, while XRP may also be affected by higher rates.
How this was made
The 30-second read
Why it matters
The announcement nudged Bitcoin up 0.5% and highlighted the sensitivity of non‑yielding assets to rate changes.
Market read
The Fed’s move is a primary macro event influencing risk assets, with immediate but modest effects on major cryptocurrencies.
What to watch
Potential impact of concurrent macro data (inflation, employment) and any Fed forward guidance beyond the hike.
Background
The Fed raised its policy rate by 25 bps on Sep 16, the first increase since 2023, signaling a return to tightening.
Ticker impact
Bitcoin rose 0.5% to about $76,000 immediately after the Fed’s September rate hike.
Potential for slight pull‑back if higher rates persist, but no major directional move expected today.
Rate‑sensitive crypto typically reacts to yield changes; the move was small and the hike was anticipated.
XRP was mentioned as another non‑yielding asset affected by the Fed’s rate increase.
Flat to slightly lower in the near term pending further Fed guidance.
Crypto assets are sensitive to higher rates; no specific catalyst beyond the Fed move.
Market effects
Higher rates may dampen risk‑on assets across the board, including crypto and growth equities.
U.S. markets set the tone; global crypto markets likely to mirror the U.S. reaction.
Fed policy shifts remain a primary driver for worldwide asset pricing.
Counterpoint
If the rate hike was fully priced in, crypto could decouple and rally on liquidity‑seeking demand.
Key entities
- RegulatorFederal Reserve
U.S. central bank that announced the rate hike.
- Financial InstitutionGoldman Sachs
Adjusted its rate‑hike forecast in response to the Fed decision.
