Crypto investors are closely watching the release of the meeting minutes from the US Federal Open Market Committee (FOMC). The minutes from the committee’s January 31-February 1 meeting are set to be released today, February 22. Market participants, including investors, analysts, and economists, eagerly anticipate the release of more insight into the central bank’s rate-hike path and its effect on the crypto market.
Investors May Go Long On Crypto Assets Despite FOMC Fears!
As the release of the FOMC meeting minutes is around the clock, several assets have experienced significant downward volatility in the last few hours. Bitcoin, the leading cryptocurrency in the market, has experienced a slowdown in its recent bullish momentum in the last 24 hours as BTC price dropped from its seven-day high of $25,100 to below $24,000.
The current volatility in the market is believed to be related to the Federal Open Market Committee (FOMC) meeting minutes, set to be released today. As a result, investors have been prompted to adopt a temporary risk-off approach, resulting in a downturn in both the cryptocurrency and stock markets.
As the Federal Reserve made changes to monetary policy, some crypto investors have expressed concern over potential interest rate hikes. However, many analysts in the market are advising to focus on the long-term potential of cryptocurrencies and blockchain technology rather than short-term fluctuations. Hence, the situation will likely remain volatile until there is enough clarification on the direction of the central bank’s rate-hike path.
Crypto Market May React To FOMC
The potential impact of the release of the Federal Open Market Committee (FOMC) minutes on Wednesday is being closely monitored in the cryptocurrency market, particularly concerning Bitcoin’s price. As the central body that determines monetary policy in the United States, any indication of a policy shift could have a ripple effect across financial markets, including the cryptocurrency market.
Federal Reserve Chair Jerome Powell relieved investors with the upcoming disinflation process and the Fed’s goal to lower the inflation rate to 2% in a recent speech at the Economic Club of Washington, which will create a long-term bullish potential for Bitcoin price and overall crypto market.