BTC Drops Due to Fed's Hesitation to Cut Rates, Report

IconCryptoNewsTerminal Staff04 Jul, 2024

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BTC Drops Due to Fed's Hesitation to Cut Rates, Report

Bitcoin has fallen to a two-month low as the Federal Reserve signaled it is not ready to start cutting rates. According to the minutes of the June meeting of the Federal Open Market Committee (FOMC) released on July 4, Fed members appeared hesitant to lower interest rates until they see more data showing a move toward their 2% inflation target. The news sent Bitcoin tumbling, with the cryptocurrency falling below $20,000 for the first time since May 12. Bitcoin has been under pressure in recent months as concerns about the global economy and rising interest rates have weighed on risk assets. The Fed's latest decision is a blow to hopes that the central bank would move to cut rates and support the economy. The Fed has raised interest rates aggressively in recent months in an effort to combat inflation. However, the central bank has also signaled that it is willing to slow the pace of rate hikes if the economy weakens. The Fed's decision to hold off on cutting rates is likely to weigh on Bitcoin and other cryptocurrencies in the short term. However, the long-term outlook for Bitcoin remains positive as the cryptocurrency continues to gain adoption and use.

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