Bitcoin and Ethereum rose after Federal Reserve minutes showed two FOMC governors preferred a 25-basis-point cut, sparking a brief dip then recovery; Bitcoin traded near $114,253 and Ethereum around $4,347 as markets weighed possible rate easing and upcoming Jackson Hole remarks.
-
Fed minutes revealed two dissenting governors preferring a 25 bp cut, creating short-term volatility in crypto.
-
Bitcoin was trading around $114,253 (+0.6% hourly) and Ethereum near $4,347 (+1.2% hourly) after the release.
-
July inflation was 2.7% year-over-year; core inflation exceeded 3%, highlighting the Fed’s policy dilemma.
Meta description: Bitcoin and Ethereum rise after Fed minutes revealed FOMC dissent; see prices, inflation context, and market outlook. Read key takeaways and expert context.
What happened to Bitcoin and Ethereum after the Fed minutes?
Bitcoin and Ethereum briefly fell then recovered after the Federal Reserve released July FOMC minutes showing two governors preferred a 25-basis-point rate cut. Prices rebounded quickly as traders digested the debate over timing of rate easing and awaited further signals, including Jerome Powell’s Jackson Hole remarks.
How did FOMC dissent affect crypto market sentiment?
The minutes noted that “a couple of members preferred to lower the target range for the federal funds rate by 25 basis points.” This revealed a tangible split inside the FOMC. Short-term volatility followed as traders reassessed rate-cut odds. Inflation at 2.7% overall and core inflation above 3% complicates the Fed’s path.
Why did the minutes matter for crypto traders?
Fed minutes provide insight into policymakers’ thinking. News that two governors — Christopher Waller and Michelle Bowman — favored a 25 bp cut signaled internal debate. Traders interpreted this as increased odds of earlier easing, which can free capital for risk assets and buoy crypto prices.
What are the key data points investors should watch next?
Investors should monitor: upcoming FOMC meeting in September, Jerome Powell’s Jackson Hole speech, monthly inflation reports (BLS), and labor-market indicators. Each release can shift expectations for the timing and magnitude of rate cuts, directly affecting risk appetite in crypto markets.
Frequently Asked Questions
Will a Fed rate cut immediately boost Bitcoin and Ethereum prices?
A Fed rate cut can increase liquidity and investor risk appetite, which often supports crypto. However, immediate price moves depend on market expectations, macro data, and investor positioning. Reaction can be muted if a cut is fully priced in by markets.
How can I follow Fed signals that affect crypto?
Listen for language in FOMC minutes, Fed governor speeches, and inflation and employment reports. Short, clear updates are best for voice search: “Watch the Fed minutes, inflation figures, and Powell’s remarks to gauge rate expectations.”
Key Takeaways
- Fed dissent revealed: Two governors preferred a 25 bp cut, signaling debate inside the FOMC.
- Short-term volatility: Bitcoin and Ethereum dipped then recovered; prices were roughly $114,253 and $4,347 respectively.
- Watch upcoming events: Jackson Hole, September FOMC, and BLS inflation data will guide market direction.
Conclusion
Bitcoin and Ethereum’s brief dip and quick recovery after the Fed minutes underscore how central-bank signaling moves crypto markets. Front-loaded inflation data and internal FOMC debate matter for rate expectations. Stay focused on official releases and Jackson Hole remarks to assess potential impacts and trade accordingly.
