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BTC and crypto market sudden jump after FOMC meeting minutes release

August 21, 2024

Crypto price rally after FOMC meeting minutes release:

Following the release of the FOMC meeting minutes, the entire cryptocurrency market experienced a notable increase in value, rising by over 2%.

The recent Federal Reserve (Fed) meeting minutes from July suggest that the Fed is considering lowering interest rates by 25 basis points in September. Several members agreed that the U.S. has made progress in reducing inflation, which is getting closer to the Fed's 2% target. Additionally, rising unemployment and slowing inflation have contributed to the decision to consider this rate cut in the coming months.

Many participants in the meeting also expressed concerns that delaying the rate cut could harm the economy. According to CNBC, after the minutes were released, traders were almost certain that the Fed would reduce rates in September. The key question for most traders now is not whether the Fed will cut rates, but by how much.

Following the release of the minutes, the entire cryptocurrency market experienced a notable increase in value, rising by over 2%. Bitcoin, which had been struggling to stay in the $59K to $60K range, jumped by over 3%, nearing $62K. Ethereum (ETH) also saw a rise of over 2%. Risk assets like cryptocurrencies and stocks generally perform well in environments with lower interest rates.

Other cryptocurrencies also saw significant gains, with Cardano (ADA) and Avalanche (AVAX) increasing by 8% and 5%, respectively. These were some of their best daily performances since the market started pulling back earlier this year. Tokens like Chainlink (LINK), Polkadot (DOT), Uniswap (UNI), Polygon (MATIC), Near Protocol (NEAR), and Internet Computer (ICP) also benefited from the market's positive reaction.