Bitcoin's Bull Index drops to 30 after Fed's rate hike

Bitcoin: Bitcoin is the pioneering decentralized cryptocurrency that operates on a blockchain network enabling secure, intermediary-free peer-to-peer value transfers. It functions as a digital asset often viewed as a store of value and hedge against traditional financial systems. In the news, Bitcoin's Bull Index, a sentiment metric tracked by analysts, shifted notably lower immediately after the Federal Reserve's policy announcement. CryptoQuant: CryptoQuant is a specialized analytics platform delivering on-chain data, market metrics, and research reports focused on cryptocurrencies and blockchain activity. It assists traders and institutions with insights derived from network-level indicators and sentiment scores. Its analyst directly attributed the Bitcoin Bull Index movement to the Federal Reserve's recent monetary policy action. Federal Reserve: The Federal Reserve serves as the central bank of the United States, responsible for setting monetary policy, regulating banks, and promoting economic stability through tools like interest rate adjustments. Led by Chairman Kevin Warsh, it responds to inflation and growth signals in its decisions. The institution's first rate hike since 2023 formed the direct trigger for the reported change in Bitcoin market sentiment. Monetary Policy: The Federal Reserve raised its benchmark interest rate by a quarter point for the first time since 2023 to help return inflation to target levels amid economic resilience and geopolitical pressures. Market Sentiment: Bitcoin demonstrated resilience in price action around the widely anticipated Federal Reserve decision, even as broader risk assets reacted to the tightening signal. Regulatory Context: The US Senate recently blocked advancement of the CLARITY Act, a crypto market structure bill, adding regulatory uncertainty alongside the monetary policy shift.