Bitcoin recovered sharply this week, erasing recent losses as it climbed from the low $75,000 range to above $80,000 in a volatile trading stretch impacted by both regulatory and macroeconomic factors. The backdrop for Bitcoin’s price action included the Federal Reserve’s first interest rate hike since July 2023. The central bank increased its benchmark rate by 25 basis points, setting the new target range at 3.75% to 4%. In projections released with the decision, the Fed indicated that interest rates could remain higher for longer, hinting at another possible increase in 2026.