Before the release of the Federal Reserve’s meeting minutes, Bitcoin experienced a strong rally, marked by two sizable hourly green candles that reflected renewed investor confidence. The cryptocurrency climbed to around $123,524, with many altcoins also turning positive after a quiet trading period. When the long-awaited Fed minutes were finally published, they drew the attention of investors eager to interpret key economic signals.
Recent JOLTS and ADP data confirmed a slowdown in the labor market, with nonfarm payroll numbers expected soon. Despite weaker employment figures, inflation concerns remain limited. Following last month’s rate cut, the minutes aligned with Jerome Powell’s earlier comments suggesting the potential for additional rate reductions in the near future.
The Fed minutes revealed several notable takeaways. Many members agreed that further monetary easing could be appropriate before the end of the year, while a few officials said they would not have supported September’s rate cut. Most participants acknowledged rising downside risks to employment and minimal upward pressure on inflation.
Discussions highlighted that policymakers’ September decisions reflected shifting risk balances. While some preferred holding current rates, most agreed that easing was necessary to support economic stability. A few members noted that the Fed’s existing repo facility helps maintain rates within the target range, reducing strain on the ongoing quantitative tightening process. Nearly all participants backed a 0.25% cut, though one, Miran, advocated for a more aggressive half-point move.
Crypto markets responded swiftly to the dovish tone of the minutes. Investors anticipate that easier monetary policy could boost liquidity and risk appetite, supporting assets like Bitcoin.
The connection between economic data and Fed policy remains complex, but these minutes continue to play a crucial role in shaping both traditional and crypto market sentiment. As investors digest the implications, volatility is likely but it may also create opportunities for those positioned in the digital asset space.