Why did Bitcoin and Ethereum move in near-perfect lockstep after the Fed rate hike?

Bitcoin and Ethereum experienced a near-perfect correlation following the Federal Reserve's decision to raise interest rates by 25 basis points on September 16. This move brought a sense of relief to the market, leading to a rally in risk assets, including the two largest digital assets. The correlation between Bitcoin and Ethereum has recently hit a multi-year high, indicating that they are now trading more like macro assets than speculative tech bets.

The move can be attributed to a market-wide sigh of relief rather than any coin-specific catalyst. Both Bitcoin and Ethereum traded above their key support levels, with Bitcoin testing resistance at US$78,189 and Ethereum hovering between US$2,350 and US$2,600. A break above US$2,500 for Ethereum could signal a breakout, while a drop below US$2,350 may lead to a deeper correction toward US$2,200.

The rally in Bitcoin and Ethereum is currently fragile, as it depends on real capital allocation from large investors, such as positive ETF flows. Until then, the crypto market remains vulnerable to further macro shocks or regulatory headlines, making price action a beta-chasing exercise rather than a genuine broad-based bull market.