Fed's Hawkish Minutes Push Bitcoin Below $66K
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- Federal Reserve released January FOMC minutes showing a hawkish majority, with several officials urging possible upward adjustments to the federal funds rate.
- Federal Reserve voted 10-2 on Jan. 28 to hold rates at 3.5%-3.75%, while Governors Christopher Waller and Stephen Miran dissented, preferring a quarter-point cut.
- Jerome Powell's term ends in May, and former Fed Governor Kevin Warsh is slated to replace him as chair this summer, despite Warsh’s past advocacy for lower rates.
- Kevin Warsh may face a policy clash with the hawkish committee, limiting his ability to pivot toward cuts early in his tenure.
- Bitcoin fell from around $68,300 to below $66,500 after the minutes were released, a 1.6% decline over 24 hours, amplified by Asian liquidity returning from the Lunar New Year holiday.
- Oil prices rose more than 4% amid escalating US‑Iran tensions, further dampening risk appetite across crypto markets.
Why it matters: The hawkish tone narrows Kevin Warsh’s maneuvering space, making early rate cuts unlikely and keeping borrowing costs high, while Bitcoin’s 1.6% drop erodes crypto investors’ gains and signals reduced risk appetite as oil spikes and geopolitical tension rise, and underscores the Fed’s influence on digital assets.
