Fed Minutes Reveal December Rate Cut on a Knife’s Edge, Bitcoin Slips Below $89,000
FOMC minutes show a narrow majority opposed a December rate cut, increasing market uncertainty and causing Bitcoin to drop below $89,000.Summary
The Federal Reserve's minutes from the October 28-29 meeting introduced fresh uncertainty regarding the December policy outlook, impacting equities, bonds, and Bitcoin. The document revealed that "many" officials felt a December rate cut was "likely not appropriate," while only "several" believed one "could well be appropriate," indicating a narrow majority was against cutting rates at that time. Furthermore, the minutes highlighted emerging stress points in money markets, such as repo volatility and declining ON RRP usage, which historically precede the end of quantitative tightening (QT). Ahead of this release, markets had already de-risked, pushing the Bitcoin price below $89,000 to a seven-month low. Analysts suggest the razor-thin divide within the Fed means the December decision is highly contested, potentially hinging on upcoming data prints like softer CPI and stable jobless claims. If the Fed holds rates steady, markets may face a longer plateau and increased volatility.
(Source：BeInCrypto)