Current Price: $120,907 (-3.52%)
The crypto market slipped sharply today — and the reason isn’t hidden in the charts this time. It’s all about the Federal Reserve’s internal conflict over interest rate cuts. 🏦
🧩 What’s Happening Behind the Scenes
Last month, the Fed made its first rate cut of 2025 — but even that decision wasn’t unanimous. The vote came in 11–1, with Stephen Miran, a former Trump economic advisor, demanding a deeper 0.5% cut instead of the approved 0.25%.
Now, as the market waits for the release of the FOMC meeting minutes, traders are bracing for volatility. Why? Because those minutes will show just how divided the central bank truly is.
⚖️ Two Camps Inside the Fed
🔹 Camp 1 — The Doves:
Want faster, stronger cuts to boost growth and employment.
Led by Miran, supported by Chris Waller and Michele Bowman, they argue inflation is cooling and that tariffs’ effects are temporary.
🔹 Camp 2 — The Hawks:
Urge patience, warning that cutting too fast could reignite inflation and leave it stuck at 3%+ instead of returning to the 2% target.
Right now, the split stands at 10 vs. 9 — ten officials want two more cuts this year, while nine prefer one or none. The balance of power? The Board of Governors in Washington, led by Jerome Powell, who controls 7 of 12 votes.
💣 Why This Matters for Bitcoin
Whenever the Fed hesitates or sends mixed signals, markets react. The uncertainty drives capital away from risk assets — and crypto is the first to feel the pressure.
Slower cuts = stronger USD → short-term BTC weakness
Aggressive cuts = liquidity boost → BTC bullish momentum
Traders are now pricing in the next decisions for October and December, and every word from the Fed will matter.
🧠 Bottom Line
This drop isn’t panic — it’s positioning. Smart money is waiting to see if Powell tilts toward “cutting for growth” or “holding for stability.”
If the Fed signals more liquidity, BTC could rebound fast. If they hesitate again, expect more short-term chop.
Stay alert — the next FOMC minutes could decide the next $BTC breakout. ⚡