Today’s release of the FOMC minutes, with the Fed Chair Jerome Powell’s speech, may be the biggest short-term catalyst for crypto
Crypto markets are holding their breath as the Federal Open Market Committee releases minutes from its latest meeting, with Chair Jerome Powell set to speak just hours later. The minutes, scheduled for 2:00 p.m. ET, will offer behind-the-scenes insights into the decision to deliver the first rate cut of the year.
Markets will also look at Powell’s speech to gauge signals about the Fed’s outlook for potential further rate cuts. Ahead of the speech, crypto markets saw muted performance, with Bitcoin (BTC) trading below $123,000 after reaching an all-time high a day prior.
The Fed’s decision to cut interest rates by 25 basis points on September 17 was widely anticipated. Still, it arrived amid political theater and infighting. Notably, FOMC members appointed during President Donald Trump’s tenure reportedly favored more aggressive cuts, and Trump consistently advocated for lower rates throughout his time in office.
What markets will look for in FOMC minutes
FOMC minutes will reveal just how divided the Fed was ahead of the rate cut decision. The minutes will also show whether inflation or employment concerns were the main focus for the FOMC members. This is key, as a focus on employment might push the Fed to cut interest rates further, which is a boon for the crypto market.
The minutes also take on added importance because the government shutdown delayed key economic releases, including inflation, employment, and consumer-sentiment data. Those gaps have heightened macro uncertainty and raised questions about how the Fed will react.
So far, the Fed has signaled concern about both upside inflation risks and a stagnating economy with a relatively weak labor market. In this constrained environment, policy space is limited—conditions that can favor perceived inflation-hedge assets such as gold and Bitcoin.