FOMC Minutes and Powell’s Speech Could Shake Crypto Markets
The crypto world is on edge as the federal Open Market Committee (FOMC) minutes are due today,with Fed Chair Jerome Powell speaking shortly after.
The FOMC minutes, set for release at 2:00 p.m. ET, will provide insights into the recent decision to cut interest rates. This is the first rate cut of the year, and markets are eager to understand the reasoning behind it.
Powell’s speech will follow, offering clues about future rate cuts. Before the speech, bitcoin (BTC) traded below $123,000, down from its all-time high the previous day.
The 25 basis point rate cut on September 17 was expected. However, it came amid political tension. FOMC members appointed by President Trump reportedly wanted more aggressive cuts, aligning with his push for lower rates.
Markets will analyze the FOMC minutes to gauge the committee’s divisions and focus areas. If employment concerns are highlighted, it could signal more rate cuts, benefiting the crypto market.
The minutes are especially important due to the government shutdown delaying key economic data. This has increased macro uncertainty.
The Fed is concerned about inflation risks and a weak labor market. in such an environment, assets like Bitcoin, seen as inflation hedges, could gain favor.
For crypto enthusiasts, today’s events could be a important short-term catalyst. Stay tuned for updates on how these developments might impact the market.
