Bitcoin and Ether declined on Thursday, adding to recent losses after minutes from the Federal Reserve’s January meeting struck a hawkish tone, deepening uncertainty around the future path of interest rates.
The crypto market was also weighed down by a broader risk-off mood amid escalating geopolitical tensions between the United States and Iran. In contrast, gold outperformed as investors sought traditional safe-haven assets.
Bitcoin was down 1.33 percent at $66,555.25 as of 12:13 GMT, while Ether fell 0.38 percent to $1,946.51. The wider crypto market also failed to mirror gains in global technology stocks, despite often mirroring the sector historically.
Policymakers remain divided on rate cut trajectory
Bitcoin continued to face pressure amid mounting uncertainty surrounding the trajectory of U.S. interest rates, with the Federal Reserve’s latest meeting minutes offering little reassurance to markets.
The minutes from the Fed’s January meeting revealed growing divisions among policymakers over the longer-term outlook for rates and inflation. Several officials even indicated that additional rate increases could be warranted should inflation remain stubbornly elevated.
Officials also expressed uncertainty over the economic implications of AI, with policymakers split on whether the technology will ultimately boost growth or weigh on it.
Cryptocurrencies reacted negatively to the renewed discussion of potential rate hikes, as higher borrowing costs tend to dampen appetite for highly speculative assets like Bitcoin.
Read: Bitcoin rebounds after falling below $67,000 as tech stocks recover
Investors eye PCE price index data
Investors are now turning their attention to upcoming U.S. economic releases for clearer signals on the direction of interest rates. In particular, markets are watching Friday’s Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred measure of inflation.
Among major tokens, XRP dropped nearly 4% to $1.4118, while Solana, Cardano and BNB posted losses ranging from 1.66 percent to 3.74 percent.
In memecoin, Dogecoin declined 2.55 percent, while $TRUMP fell 1.7 percent.
