Bitcoin has historically weakened after U.S. Federal Reserve rate increases, with an average 6.29% decline in the month following each of six hikes from 2022 through 2026, according to an analysis released by The Seoul Economic Daily on the 22nd. Ethereum fell 4.35% and XRP 5.44% on average over the same periods. The pattern was particularly pronounced after the July 2023 increase, when bitcoin and ethereum dropped 11.27% and 11.64%, respectively, while XRP fell nearly 30%. Rate increases can improve the relative returns of bonds and tighten liquidity, reducing demand for risk assets. The analysis also found that rate cuts produced limited average gains, with bitcoin up 3.13%, ethereum down 0.09% and XRP up 61.36%, largely because of a more than 369% surge after the November 2024 cut. Following the latest increase, bitcoin initially fell into the $75,000 range before recovering to $80,000 and briefly exceeding $86,000, while ethereum and XRP rose about 3% and 7%. Market participants said expectations for the hike were already reflected in prices, while short-position liquidations amplified the rebound. The Fed's higher year-end rate projection has nevertheless kept attention on the risk of additional increases.