Cryptocurrency investors have been locked into this development for days. The time has come and the FOMC minutes have been released. Bitcoin fell to the level of $ 23,300 today as the US markets also opened negative.
FED meeting minutes, which have been followed for a long time by Bitcoin and cryptocurrency market investors, have been announced.
- Some members stated that the policy rate should stay there for a while after it reaches a sufficient level to control inflation.
- Some Fed members consider it appropriate to continue the tightening in monetary policy for a while.
- Interest rate increases are expected to continue.
- Respondents said the strength of the labor market showed that economic activity was stronger than the sluggish second quarter reflected, raising the possibility of an upward revision in GDP.
- Fed officials are predicting a slower rate of increase at some point.
- All participants decided to raise interest rates by 75 basis points on 26-27 July.
- Many Fed officials saw the danger that the Fed might tighten too much.
- Participants agreed that there is little evidence that inflationary pressures are easing and that it will take a long time to resolve the situation.
- Respondents observed that the latest inflation expectations data are in line with their long-term expectations adjusted towards 2%.
Following the Fed minutes, the expectation for a 50 basis point rate hike in September rose to 60 percent. When we look at the price of Bitcoin, it is seen that the price did not make a sloppy move and only increased by $ 100.
Investors were following the minutes of the July 26 and 27 meeting, where the Fed Open Market Committee decided to raise the target range for the federal funds rate from 1.5-1.75% to 2.25-2.5%. U.S. Treasury yields were higher on Wednesday as demand for fixed-income assets weakened as investors await the release of the Fed's July meeting minutes.
The increase in yields differed from the decline seen earlier in the week amid weak US East Coast manufacturing data and reports of slowing growth in China. As consumer price growth slowed last month, markets seem to expect the Fed to ease the tightening cycle somewhat on news of improved US inflation, but it's not yet clear whether the Fed will adopt the same sentiment.