- The price of Bitcoin fell below $37,000 after the release of the minutes of the recent Federal Open Market Committee (FOMC) meeting on Tuesday.
- According to the minutes, monetary policy should continue to be “restrictive” for convincing data to bring inflation back to the Fed’s 2% target.
- Caution continues in the broader market. Major indices remained down after the release of the minutes of the last FOMC meeting.
In the last 24 hours, the Bitcoin price was shaken by the Binance crisis and showed weakness after the FOMC minutes: Details of the minutes!
Bitcoin Price Drops After FOMC Meeting Minutes
In the last 24 hours, the price of Bitcoin fell below $37,000 after the release of the minutes of the recent Federal Open Market Committee (FOMC) meeting on Tuesday. According to the minutes of the November FOMC meeting, “Participants noted that inflation had followed a moderate trajectory over the past year, but emphasized that current inflation was unacceptably high and well above the Committee’s longer-run goal of 2 percent.”
The price of Bitcoin dropped to $36,497, and after the minutes were released, it fell to $35,800 during the hours with the lowest assets. BNB experienced the most dramatic decline for altcoins, dropping more than 9% to $233 during the same period. This decline occurred as changes were taking place in Binance, with Changpeng Zhao stepping down and Richard Teng taking over as the new CEO.
Most risk assets, sensitive to any fine details about the Fed’s monetary policy, have generally lost value; however, contrary to top tokens, Ether has maintained its level above $2,000 and is currently trading at $2,025.
The FOMC minutes reveal that Federal Reserve policymakers are not inclined to lower interest rates. Fed officials noted that inflation is still above their target of 2 percent. According to the minutes, monetary policy should continue to be “restrictive” for convincing data to bring inflation back to the Fed’s 2% target.
“Consistently, participants evaluated that it is crucial to maintaining a policy stance that is sufficiently restrictive over time to return inflation to the Committee’s 2 percent target,” the minutes said.
The minutes did not show that Fed officials discussed when they might start lowering interest rates. This supports Federal Reserve Chairman Jerome Powell’s statements in the post-meeting press conference: “The Committee is not currently considering any interest rate cuts.”
Caution continues in the broader market
Caution continues in the broader market. Major indices remained down after the release of the minutes of the last FOMC meeting. The S&P 500 and Nasdaq completed the trading day on Tuesday with a decline, ending a five-session winning streak for both indices.
The minutes of Tuesday showed that Fed officials decided to take a cautious approach to raising future U.S. interest rates. Core inflation continues to stay well above the central bank’s 2 percent target.
However, last week’s consumer price data showed that inflation fell unexpectedly to 3.2% in October – the first decline in the past four months. Previous data had shown a 3.7% increase in the 12-month period up to September.
