FOMC Minutes and Powell’s Speech: Key catalysts for Crypto Markets
Crypto markets are on edge as the Federal Open Market Commitee (FOMC) releases its latest meeting minutes. Fed Chair Jerome Powell will also speak shortly after. Both events could significantly impact crypto.
The minutes, due at 2:00 p.m. ET, will shed light on the Fed’s decision too cut interest rates for the first time this year. Powell’s speech will hint at future rate cut possibilities. Before the speech, Bitcoin (BTC) traded below $123,000, down from its all-time high.
The Fed’s 25 basis point rate cut on September 17 was expected. However,it came amid political tension. FOMC members appointed by President Trump reportedly wanted bigger cuts. Trump has long pushed for lower rates.
Markets will analyze the FOMC minutes for divisions among members. Thay’ll also check if inflation or employment was the main concern. A focus on employment could lead to more rate cuts, benefiting crypto.
The minutes are crucial because a government shutdown delayed key economic data. This uncertainty makes the Fed’s reaction unclear. The Fed is worried about inflation risks and a weak labor market. In such conditions, assets like Bitcoin could thrive.
