FOMC Minutes Today: Will Bitcoin and Crypto Market Crash After Fed Signals?

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Coingapestaff

Coingapestaff

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CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
FOMC Minutes Today: Will Bitcoin and Crypto Market Crash After Fed Signals?

Highlights

  • FOMC minutes may signal future interest rate changes affecting markets.
  • Bitcoin struggles to break resistance, risks further decline below $67k.
  • Crypto market under pressure, uncertain moves ahead of FOMC minutes.

 The Crypto market remains under pressure, with Bitcoin and Ethereum struggling to gain any meaningful momentum. Bitcoin price hovered around $67,000, while Ethereum continues to trade within a tight range. As the market braces for FOMC minutes today, traders are concerned about potential implications for the crypto market.

FOMC Minutes Today: What’s to Come?

The Federal Reserve’s minutes from the January 16-17 meeting will be released today at 2 p.m. EST. These minutes will provide insights into why the Fed decided to hold interest rates steady last month.

There will also be the consideration of any indication of future changes in interest rates by the investors. The meeting showed the Fed kept its policy rate at 3.5-3.75, which indicated some agreement among the policymakers.

Nevertheless, inflation is very high, and the Fed is still concerned about the job market. The minutes would give an insight of the risks the Fed is considering when making future moves.

Fed Chair Jerome Powell stated that inflation remains a problem, but the threat of additional inflationary pressure or a steep rise in unemployment is reduced.

The minutes can give clarity on how the Fed strikes a balance on these risks, especially given the fact that the economy is experiencing current difficulties. 

The release would affect the investor sentiment, especially in the volatile markets such as the crypto market.

Bitcoin Faces Resistance Amid Market Weakness

Bitcoin price is struggling to break above the $70,000 resistance level, recently dipping to $67,489. This marks a 0.80% drop over the past 24 hours. 

This is a decline of 0.80% in the last 24 hours. Bitcoin remains in a phase of consolidation, failing to achieve an actual upward momentum.

If Bitcoin does not maintain its level above the support of $67,000, it may continue its drop to $60,000. 

On the other hand, an upswing over the $70,000 resistance may indicate an upward trend to $75,000, according to the full Bitcoin forecast report.

FOMC Minutes Today: Will Bitcoin and Crypto Market Crash After Fed Signals?
Source: Tradingview

Bitcoin is still in a volatile market, and its price might fluctuate rapidly depending on the overall economic conditions. The release of the FOMC minutes could provide clues on future market movements, especially if the Fed hints at any changes to its interest rate strategy.

Ethereum Price Struggles Below $2,000 Ahead of FOMC Minutes Today

Ethereum price is trading sideways between the $1,700 and $2,150 range, signaling indecision among traders. ETH was recently rejected at the upper consolidation level, just under the $2,000.

This may reflect a failure of purchase strength and may result in a possible price adjustment. If Ethereum fails to break above the resistance, it may fall toward the lower end of the range at $1,900. 

Will XRP Price Hold $1.4 Support  Level?

XRP price traded at $1.47, finding support near the lower trendline. If XRP price breaks below the support level, it could face a deeper correction. Like Bitcoin and Ethereum, the price of XRP is strongly affected by the overall market trends.

Should the market remain weak or should the FOMC minutes indicate increased aggressive rate increases, XRP may be under further downward pressure.

To sum up, the crypto market is experiencing tremendous challenges. Bitcoin and Ethereum are still facing resistance, and XRP is experiencing downside risks.

The FOMC minutes released today might give some insightful information about the future moves of the Federal Reserve that may also affect the way the cryptocurrency market is going. Traders are keeping a close eye on these developments to determine the subsequent move in the market.

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Frequently Asked Questions (FAQs)

1. How do the FOMC minutes impact the crypto market?

The FOMC minutes can influence investor sentiment, particularly in volatile sectors like crypto, by signaling future interest rate decisions.

2. Why is Bitcoin struggling to break the $70,000 resistance?

Bitcoin faces resistance at $70,000 due to market indecision and broader economic factors that influence its price movements.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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