Bitcoin (BTC) outlook as FOMC minutes signal possible interest rates pause in 2023

August 17, 2023 06:16 AM AEST | By Invezz

Bitcoin (BTC) outlook as FOMC minutes signal possible interest rates pause in 2023 — Image source: Invezz

Potential rate pause in 2023

Still no significant expectation of another rate hike in 2023 according to CME FedWatch after FOMC minutes. pic.twitter.com/dPjfkAp3La
— Kyle Berry カイルベリー (@realKyleBerry) August 16, 2023

The Fed staff trusts inflation pressure might trigger supply shock in the US. Furthermore, the minutes indicated that the economy will not enter into recession in 2023, signaling a potential rate pause by the United States central bank in the coming few conferences.

Moreover, the CME FedWatch Tool, which measures what market players think of the Fed’s potential rate actions in the upcoming meetings, shows the Fed might not hike interest rates soon.

Containing rising inflation

Some Federal officials believe tighter financial conditions might trigger an economic slowdown. They added that fiscal policy tightening seems to work as planned while inflation hovers well beyond the target of 2%.

Nonetheless, the Federal revealed stability in containing rising inflating, citing lower online prices and softening core goods prices. Amidst the elevated inflation, the staff noted a moderate expansion in economic activity, increased jobs in recent months, and low unemployment rates.

Bitcoin price outlook

Bitcoin gained only 0.3% following the FOMC minutes. The leading cryptocurrency by market capitalization remains bearish, hovering beneath the $30K mark. The digital asset traded at $29,116.47 at press time.

Nevertheless, a strengthening economy indicates potential surges for Bitcoin as far as the longer term is concerned.

The post Bitcoin (BTC) outlook as FOMC minutes signal possible interest rates pause in 2023 appeared first on Invezz.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.