Due to vulnerabilities brought on by macroeconomic uncertainty, the Fed meeting minutes may indicate a bullish environment for Bitcoin price.
According to the minutes from the May Fed meeting, members of the Federal Open Market Committee (FOMC) saw uncertainty about potential future interest rate increases. The committee was concerned about the debt limit problem and believed that additional financial restrictions would be required, as severe disruptions were reportedly anticipated.
The release of the minutes from the Fed meeting had no discernible impact on the cryptocurrency market. The American government has not made any promises regarding how it plans to prevent a debt default in this situation. The top-level negotiations have ceased since Republican leader Kevin McCarthy met with President Joe Biden on Monday, but on Wednesday, McCarthy reaffirmed his belief that a deal was still feasible.
Decision to Increase Rates Made Unanimously
There was broad support across the board for hiking interest rates, as the Fed minutes revealed. However, the committee believed that future sessions would likely involve a great deal of uncertainty regarding rate increases. The FOMC thus stated that it would keep an eye on how new information might affect the forecast for the economy.
“(The committee) would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the committee’s goals.” As revealed in the minutes.
As uncertainty in the macroeconomic environment creates short-term vulnerabilities, this could indicate a bullish scenario for the price of Bitcoin.
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