Bitcoin Price Analysis Following the Release of FOMC Minutes

• Bitcoin (BTC) price is currently trading in the price zone of $24,000.
• In the most recent meeting, the Federal Reserve raised its benchmark fed funds rate by 25 basis points.

The joint meeting of the Federal Open Market Committee (FOMC) and the Board of Governors of the Federal Reserve System saw participants display both hawkish and dovish sentiments. However, there was no discussion on pausing the rate hike cycle.

The minutes also showed that most Fed officials supported slowing the pace of interest rate increases.

FOMC minutes highlights

According to the minutes of the meeting, “only a few participants remarked that recent failures of companies involved in crypto finance have had a limited effect on the broader financial system. And these participants indicated that this limited effect reflected the minimal extent of the crypto market’s connections to the banking system thus far, consistent with the risks associated with many of these activities.”

“a number of participants stressed that a drawn-out period of negotiations to raise the federal debt limit could pose significant risks to the financial system and the broader economy.”

Bitcoin price analysis

Bitcoin is down with almost 1.21% in the last 7-days. Meanwhile, Bitcoin is currently trading at a price of $24,448.81 with a 24-hour trading volume of $29.32 billion. And it is up 1.43% in the last 24 hours, with a market cap of $471.84 billion. 

It seems that the after-effect of the FOMC meeting on Bitcoin price brought the most traded cryptocurrency back in the green-zone.

On the other hand, not just Bitcoin, Ethereum (ETH) too went green following the FOMC’s minutes. Ethereum is trading at $1,663.42 with a 24-hour trading volume of $9.06 billion (at the time of writing). It saw an increase of almost 1.52% in the last 24 hours.

Bitcoin has gained tremendously so far. The digital currency is consolidating above the key $20,000 mark, with the rally at the start of 2023 carrying it as much as 50% higher, crossing the $25,000 level—the highest levels since last summer. Bitcoin has even surpassed the Dow Jones Industrial Average and S&P 500 in recent days.

Some market participants are optimistic that the roaring rally in cryptocurrency has more staying power. While some have called it the start of a new bull market. More inflation indicators come later this week. A higher than expected reading could damage the cryptocurrency rally.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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