Bitcoin (BTC) has surged following the release of the U.S. Federal Reserve’s July meeting minutes, trading at $60,271—a 1.36% increase over the past 24 hours, according to CoinMarketCap. Ethereum (ETH) also experienced a modest rise, reaching $2,605, up 0.35%. The Fed’s minutes suggested that a potential interest rate cut could be on the horizon in September.
The meeting minutes indicated that a majority of Federal Reserve officials deemed a rate cut appropriate, provided that forthcoming economic data aligns with expectations. The focus now shifts to Fed Chair Jerome Powell, who is scheduled to speak at the Jackson Hole Monetary Policy Symposium on Friday. Powell’s remarks may offer further insight into the anticipated timing of any rate adjustments.
The Federal Reserve’s aggressive rate hikes in 2022, aimed at tackling the highest inflation levels in 40 years post-pandemic, initially led to declines in both stocks and cryptocurrencies as investors shunned riskier assets in a high-cost borrowing environment. However, the market has since rebounded, driven by the burgeoning AI sector and the approval of spot Bitcoin ETFs, which have spurred increased investment in U.S. equities and cryptocurrencies.
Progress in the Fed’s inflation reduction efforts is evident, with the minutes noting a reduction in inflation over the past year and continued progress toward the Committee’s 2% target. Despite these improvements, equities and gold have outperformed cryptocurrencies recently, with the S&P 500 approaching all-time highs and gold reaching new peaks.
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