Bitcoin (BTC)'s price has increased following the release of the U.S. Federal Reserve's July meeting minutes, and is currently trading at $60,271, reflecting a 1.36% rise in the past 24 hours, according to CoinMarketCap data. Ethereum (ETH) also saw a slight increase, trading at $2,605, up 0.35%. The Fed hinted at a potential interest rate cut in September.
The minutes revealed that most officials agreed a rate cut would be appropriate if upcoming economic data aligns with expectations. All eyes are now on Fed Chair Jerome Powell, who is set to speak at the Jackson Hole Monetary Policy Symposium on Friday, where he may provide more clarity on the timeline for rate cuts.
The Fed began raising rates aggressively in 2022 to combat 40-year high inflation after the Covid-19 pandemic. Initially, this tightening negatively impacted both stocks and crypto, as investors typically steer clear of riskier assets when borrowing costs are high. However, since then, these assets have rebounded, driven by the booming AI sector and the approval of spot Bitcoin ETFs, leading to increased investment in U.S. equities and crypto.
The Fed's efforts to reduce inflation to 2% seem to be progressing. The minutes noted that inflation had eased over the past year, with further progress toward the Committee's target observed in recent months. Despite the improving macro conditions, equities and gold have outperformed crypto so far, with the S&P 500 nearing all-time highs, while gold continues making new highs.