Bitcoin prices were trading down 1.31% or $802.83 at writing as investors sold the world’s leading cryptocurrency after yesterday’s release of FOMC minutes. Today’s decline pales compared to yesterday’s rally, as many anticipated a positive reaction to the FOMC minutes.
The Minutes of the FOMC July meeting indicated that most Federal Reserve policymakers were leaning towards a rate cut in September. However, it is still unclear whether the Fed will cut rates by 50 or 25 basis points, with the latter already guaranteed.
However, some analysts believe that the Fed should cut rates by 50 basis points or more given the weakening US jobs markets, as the number of jobs added in the past 12 months was recorded at 2.1 million, missing consensus expectations of 2.9 million jobs by a wide margin.
Bitcoin daily price chart
Despite today’s decline, Bitcoin was still trading above the crucial $60,000 level, with many anticipating a resumption of the uptrend if the price remains above this level. The surge in Bitcoin prices on the FOMC minutes is based on the anticipated increase in market liquidity due to the rate cuts.
The release of the US jobless claims data today also contributed to the decline in Bitcoin prices. The claims increased more than expected, confirming the weakening jobs market.
This post was last modified on Aug 22, 2024, 16:33 BST 16:33