Crypto Market Update

Crypto Traders Deleverage Following Fed's Rate Indications

As traders in the cryptocurrency market reassess their positions, the recent minutes from the FOMC meeting on Wednesday have caused a stir. These minutes revealed that the U.S. Federal Reserve is considering maintaining current interest rates until there is further improvement in inflation metrics. Discussions also touched on the possibility of pausing or decelerating the reduction of the balance sheet.

Market Reactions

In the wake of these developments, the yield on the 10-year Treasury bond has declined, while the U.S. dollar has shown signs of weakening. Meanwhile, the cryptocurrency market has seen positive movements, highlighted by a 1.4% increase in the CoinDesk 20 Index and a 1.2% rise in bitcoin prices over the past 24 hours.

Voices Influencing the Market

Comments from notable figures have also played a role in the market's upbeat performance. Czech National Bank Governor Ales Michl reinforced the narrative for bitcoin as a reserve asset. Additionally, former U.S. President Donald Trump expressed that he has ended what he termed as “Joe Biden’s war on Bitcoin and crypto.”

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