Fed Minutes: How Bitcoin Price Reacted To Interest Rate?

FOMC minutes are released on Tuesday and the broader crypto market has shown minimum to no effect. Bitcoin, Ethereum, and other top altcoins have shifted into red zones. Most of the top coins have declined in response to the fed minutes release.

The Fed has announced that they will “proceed carefully” and will only hike the rates if the inflation rate falls.

While Bitcoin (BTC) is hovering around $37,000. Ethereum (ETH) is currently dealing with a reddish candle. As the US dollar declined on expectations that the Federal Reserve would stop rising interest rates, gold prices shot to a record high of over two weeks on Tuesday.

BTC Price Could Rally If Fed Hikes Interest Rates

A potential upcoming Bitcoin rally is expected if the Fed hikes the interest rates again. According to the CPI data from the Bureau of Labor Statistics ( BLS), the CPI has mostly declined since September. This may indicate that the purchasing power of the Dollar is getting weak and hence people are going for alternatives.

The Fed held interest rates steady during its second consecutive meeting in November, opting to hold rates after last raising them in July.

As per the reports, the interest rates are constant in a range of 5.25% to 5.5%, but policy meeting minutes from October 31 to November 1 are expected to reveal a range of views on the probable need to raise rates even more.

Experts and analysts predict that Bitcoin will not go further down from $30K any time soon. In a recent X post, prominent crypto analyst Willy Woo shared an on-chain analysis suggesting that Bitcoin (BTC) is unlikely to dip below $30,000.

Further, Woo wrote that the price value paid up by investors has never retested the support again after Bitcoin has approached halving. That means that Bitcoin’s current support is at $30K, which will remain unaffected.

In another X post, Bitcoin maximalist Michael van de Poppe shared a Bitcoin price chart claiming that BTC has tested the resistance four times in a row. This makes the resistance weak and the price could break out anytime soon. He also predicts that a rally to $40K would be possible.

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Crypto Markets Dips Ahead of FOMC Minutes

On the other hand, the top altcoins like Ethereum, XRP, and BNB have shown no such movements. Most of the top altcoins are in red today. The worldwide cryptocurrency market cap is now $1.46 trillion, representing a 0.8% increase in the last 24 hours.
The total cryptocurrency trading volume on the previous day was $68.4 billion. Bitcoin has a 49.7% market share, whereas Ethereum has a 16.5% market share. Will the FOMC minutes release spike the crypto prices today?

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