Fed has indicated that the first rate hike will happen in March
The price of bitcoin, the top cryptocurrency, hit a high of $38,820 on the Bitstamp exchange after the Federal Reserve announced Wednesday that interest rates would remain unchanged.
The Fed has indicated it may raise rates in March, but has no concrete timeline for now.
The central bank was widely expected to signal that it would start raising interest rates.
The sharp move by the Fed has been seen as one of the biggest headwinds for cryptocurrencies and equities.
Earlier this week, bitcoin fell below $33,000 during a selloff that analysts believe was triggered by an unfavorable macro environment.
Analysts believed that crypto and other assets were able to benefit from the ultra-easy monetary policy conducted by the central bank.