The cryptocurrency market has entered a turbulent phase due to recent developments. On one hand, there are various predictions and speculations about the FED’s interest rate decision in July, and on the other hand, the markets are focused on the minutes of the FED’s June meeting. The minutes of the FED’s June meeting have just been announced.
What Will FED’s Interest Rate Decision Be?
Although the FED kept the policy interest rate unchanged at its June meeting, FED Chairman Jerome Powell raised questions by giving signals that interest rates could be raised in the coming months, depending on the course of the economy and inflation.
With the FED’s interest rate decision and the impact created in the markets by successive spot Bitcoin ETF applications by large asset management companies such as BlackRock, the cryptocurrency market went through a turbulent process in June. On the other hand, volatility in the cryptocurrency market is relatively low compared to June, while the markets are now focused on the minutes of the FED’s June meeting, which were just announced.
FED’s June meeting, which were just announced, it was stated that almost all officials expect further interest rate increases in the coming months. The prominent details from the meeting minutes are as follows:
- Almost all officials preferred to keep interest rates stable at the June meeting.
- Some officials preferred a 25 basis point increase at the June meeting.
- Officials said that the GDP has been resilient in recent quarters, it will be sluggish for the rest of 2023.
- Core inflation has not shown a continuous decline since the beginning of the year.
- Employees still see a slight recession later this year and a moderate recovery thereafter.
- Almost all officials expect more interest rate increases in 2023.
- Some officials supported an interest rate increase but were willing to pause interest rate increases.
How Will the Cryptocurrency Market Be Affected?
The fact that almost all officials expect further interest rate increases in the coming months did not escape attention in the minutes. Many expert names and analysts, who drew attention to the situation of strengthening the probability of interest rate increase before the meeting, argued that if interest rate increases and monetary tightening policies continue, new declines may occur in Bitcoin, the leading cryptocurrency, and the cryptocurrency market, and warned cryptocurrency investors.
