The US Federal Reserve's Minutes Released

The minutes of the Federal Reserve meeting showed a clear division among its members; two prominent members (Waller and Bowman) called for an immediate 0.25% interest rate cut, while the majority preferred to wait due to ongoing inflationary pressures. This division reflects growing concerns about slowing economic growth while prices remain high, indicating a potential entry into a stagflation phase.

The markets, which were almost certain of an interest rate cut in September, have reduced their expectations to about 85%, meaning that the decision is no longer guaranteed.

💡 Impact on Crypto:

Short-term: High interest rates put pressure on liquidity and limit new inflows into crypto, which may cause volatility or a limited decline.

Medium-term: The mere expansion of the discussion within the Federal Reserve regarding an interest rate cut is considered a positive indicator and paves the way for greater liquidity to flow into high-risk assets.

Long-term: If the cut actually occurs, it will serve as a supportive spark for a new bull run, especially for Bitcoin as an inflation hedge asset.