Bitcoin (BTC) and Ether Rally Regardless Mixed Fed Messages

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Fed minutes from the Nov. 2022 Federal Open Markets Committee Meeting reveal that most Fed officials see price softening soon.

Nonetheless, some officials pointed out that the terminal price, i.e., the price at which inflation is expected to reach the Fed’s target of around 2%, was higher than previously expected.

Fed minutes cause major indexes and cryptocurrency to rally

Following the minutes were released, the S&P 500 inched 0.4 percent higher. yields has decreased, and the Dow Industrial Average rose 0.2%. The Nasdaq spiked 0.7%.

“Looking through the Minutes there is nothing terribly surprising with officials suggesting that slowing the pace of right hikes would allow the Fed to better assess progress towards its goals ‘given the uncertain lags’ associated with monetary policy,” said Michael Reinking, an NYSE market strategist.

Bitcoin responded positively to the latest information, up almost 3 percent to around $16,700 in the last 24 hours, with Ethereum surging 4.75 percent to hands at $1,177.52.

Top-10 memecoin Dogecoin () rose 4.8 percent to $0.082, while BNB went up by 13.2%.

Though Fed minutes are traditionally outdated, as stock markets have already absorbed the outcome of the previous meeting, they reveal the Fed’s on the United States economy and provide insight into the bank’s future actions.

Fed officials decry the uncertain ‘lag’ in economic response

The minutes come on the back of United States data released on Nov. 19, 2022, revealing signs of a in hiring. The week ended Nov. 19, 2022, saw 240,000 unemployment claims, over estimates of 225,000. This comes as tech and crypto-related layoffs flood the latest information, stabilizing the balance in the middle of job and .

A lower month-on-month core Consumer Price Index in Oct. 2022 compared to Sep. 2022 likewise showed signs of cooling inflation. Nonetheless, meeting still feel it is as well high and predicted that lower-than-expected GDP growth would help balance supply and demand.

“With inflation remaining far as well high and showing few signs of moderating, participants observed that a period of below-trend real GDP growth would be helpful in bringing aggregate supply and aggregate demand into better balance, reducing inflationary pressures, and setting the stage for the sustained achievement of the Committee’s objectives of maximum employment and price stability, ” the report reads.

The committee likewise admitted that regardless of signs of the Fed’s interest price hike policy affecting prices, it is still challenging to predict the lag in the middle of Fed action and economic response.

Fed minutes roils analyst

Technical analyst Sven Henrich points out the glaring omission of any reference to a fall in the Fed minutes, slamming the organization for being dishonest.

Indeed, the growing negative spread in treasury yields has been a predictor of previous recessions. A fall could come in Q1 of 2023, but only be made official in Q2 or Q3. Earlier this month, the difference in the middle of 10Y and 3M yields was around -0.4%.

“ Fall looks increasingly likely for the year and if the Fed responds hence [slower hikes], a fall may turn  out to be short and shallow,” said Jeffrey Roach of LPL Financial.

Regardless the recent Bitcoin (BTC) price increase, open interest on CME’s Bitcoin (BTC) futures contracts is surging as Wall Street continues  to bet on the decline in the price of Bitcoin.

Cme Bitcoin Futures Open Interest
Source: CME Group

Several analysts believe will touch the $10,000 mark before the end of 2022. At the time of publication, the world’s largest cryptocurrency had lost earlier gains, and is down 0.5 percent to below $16,500.

Source: Coin360

For Be[In] Cryptocurrencies  latest Bitcoin (BTC) analysis, click here.

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