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Bitcoin price responded to July 2023 Federal Open Market Committee’s (FOMC) meeting minutes with a slight uptick. Federal officials believe further tightening could be essential as inflation fears might exceed expectations.
Meanwhile, market participants expect the Federal Reserve to pause rate hikes this year.
Potential rate pause in 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, threatening further slides.
Nevertheless, a strengthening economy indicates potential surges for Bitcoin as far as the longer term is concerned. Experts believe events such as the upcoming halving and potential Bitcoin ETF’s approval by the SEC could see Bitcoin skyrocketing.
Fundstrats’ Tom Lee trusts authorizing spot Bitcoin exchange-traded funds might propel the leading crypto towards the $150K – $180K range.
In other optimistic updates, the National Futures Association has approved Coinbase to offer Bitcoin and Ethereum futures to eligible clients in the United States (read more)
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