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The Fed, through the FOMC or Federal Open Market Committee, adjusts rates depending on the economy's needs.
1. If the FOMC believes the economy is growing too quickly, and it's likely that inflation or rising prices might occur, the FOMC will increase the fed funds rate.

2. Markets
Bitcoin Falls Slightly After Fed Rate Hike.
BTC was down about 1% after the U.S. central bank boosted the federal funds rate by 25 basis points. Fed Chair Jerome Powell noted the central bank had omitted language signaling additional rate hikes at upcoming meetings.
By Jocelyn Yang

https://www.coindesk.com/markets/2023/05/03/bitcoin-falls-slightly-after-fed-rate-hike/

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Bitcoin’s (BTC) price dropped slightly to below $28,500 after the U.S. Federal Reserve did what was widely expected and raised interest rates by 25 basis points (bps). The increase sends the federal funds rate to a target range of between 5% and 5.25%.
The largest cryptocurrency by market capitalization was recently trading at around $28,350, down about a percentage point over the past 24 hours, according to CoinDesk data.

Despite the decentralized nature of cryptocurrency, the FOMC which is the Federal Open Market committee is the agency responsible for dollar rates and other interest rate hike, under direction from the Feds. It also holds Bitcoin traders to ransom with this power it wields over the crypto in controlling the market to avoid inflation and crash of markets like what happened to FTX.
The dollar, USD, is a dominant value in the market and with Bitcoin being a strong competition, it is a no wonder it pends to become legal tender in the U.S.
This is also a how to control inflation and hike of prices of commodities and service too, which is what FOMC stands to adjust after its announcement.
When there is an increase of the interest rate, the value of fiat money is reduced. This will mean a decline in any crypto market investment as well.

*Is same effect of FOMC policy felt on other crypto currencies, alt coins including stocks and shares, around the world?

*How does Bitcoin adjust to the market after this kind of meeting and announcement by the FOMC affects interests rate of fiat and devalues it(Bitcoin) ?

Let's shed more light.
Let's discuss!