The FOMC minutes have signaled a dovish shift from the Fed officials, who look likely to make further rate cuts to end the year. The Bitcoin price bounced on the back of the Fed minutes release, as market participants anticipate another rate cut this October.
The Federal Reserve released the minutes of the September FOMC meeting, in which most participants judged that it is likely appropriate to ease monetary policy over the remainder of the year. However, many Fed officials still raised concerns over inflation, with their 2% target stalling this year as inflation readings increased.
As CoinGape reported, the Fed made the first rate cut of the year at last month’s FOMC meeting. Now, the FOMC minutes suggest that that was just the beginning of a dovish shift with more rate cuts on the horizon.
Based on the median estimate, Fed officials expect to make two additional 25-basis-point (bps) rate cuts by year-end. This is likely to come at the October and December FOMC meetings. CME FedWatch data shows that there is currently a 92.5% chance that the Fed will make a 25-bps cut at the October 29 meeting.
Meanwhile, the Bitcoin price briefly surged above $124,000 on the back of the FOMC minutes release but is now hovering around $123,500. TradingView data shows that the flagship crypto is up over 2% in the last 24 hours.
