The World’s largest crypto, Bitcoin, started the day down 1.56% at $23,812. The cryptocurrency held up well in price during the international holidays over the week, but saw losses after the release of the Federal Reserve’s minutes.
The Fed Minutes indicated that the United States Government will most likely continue its interest raises for the next couple of months.
At their recent meeting, officials came to an agreement to adopt a more gradual approach to raising rates. The benchmark federal-funds rate was increased by a quarter-percentage point, a smaller move than the previous increases of half a point in December and 0.75 points in November.
According to the released minutes from the meeting, most officials believed that the slower pace of rate increases was the best way to manage the risks associated with raising rates too quickly or too slowly. However, the minutes also showed that some officials expressed concerns about the possibility of halting or slowing their efforts to fight inflation too soon.
While the decision to take a more measured approach to rate increases was generally accepted, some officials felt that a more aggressive approach was necessary. The debate over how best to manage the economy and control inflation remains ongoing, and officials will continue to assess the impact of their decisions on the wider economy.
The Federal Reserve gave the minutes a tone of continuing to press interest rates in the country, which is a negative scenario for risk assets.
Ether (ETH) has been trading sideways today at $1,642. Meanwhile, the crypto market capitalization has fallen 0.76% according to CoinMarketCap data, with a crypto market value of $1.09 trillion.
The market’s fear and optimism index has fallen three points compared to the previous day, to 56 out of 100. Nevertheless, the index remains alert in the optimistic zone.
The cryptocurrency market has been volatile in recent years, with sudden price swings and the potential for significant losses. Investors should be aware of the risks involved and consult a financial advisor before investing in cryptocurrencies.