Bitcoin’s Bull Index Falls to 30 Following Federal Reserve Rate Hike

Bitcoin's Bull Score Index, a key sentiment gauge from CryptoQuant, dropped sharply from 80 to 30 within a week after the Federal Reserve raised interest rates by 25 basis points on September 16, 2026. This increase brought the target range to 3.75%-4.00%, marking the Fed's first rate hike since 2023. The abrupt shift in sentiment reflects the market's reaction to the tightening of monetary policy, which has historically led to a decline in asset prices.

The Bull Score Index aggregates various on-chain and market signals to assess Bitcoin's trend health. Readings above 60 indicate bullish conditions, while those below 40 signal bearish sentiment. The index had previously surged toward 80 in late August when Bitcoin's price exceeded $80,000, fueled by optimism regarding a supportive macroeconomic environment. However, this optimism dissipated following the Fed's announcement of its rate hike.

Currently, Bitcoin is trading around $76,000, having experienced a decline of approximately 4% over the past week. The market's response to the rate hike was notable, as traders had anticipated the increase, yet the Bull Score Index still fell dramatically. Projections suggest that at least one more rate hike may occur before the end of the year, potentially pushing the target range toward 4.25%.

In addition to the index's decline, other indicators point to a bearish sentiment among short-term holders, many of whom are now facing losses. Notably, exchange-traded fund (ETF) outflows have reversed after a period of inflows that supported prices during the summer. For a sustained bullish market to return, the Bull Score Index would need to rise above 60, and Bitcoin's price would have to exceed $83,000, a threshold that currently appears distant.

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Source: KLEA News