The cryptocurrency market has experienced a downturn due to the recent release of the Federal Open Market Committee’s (FOMC) minutes. These minutes have raised investor concerns as they indicate the possibility of the Federal Reserve delaying its monetary policy easing. The uncertainty has caused an uptick in the U.S. 10-year Treasury note yield, signaling expectations of a persistently tight monetary policy, which is generally unfavorable for riskier assets such as cryptocurrencies.
The released minutes highlighted the FOMC’s cautious approach towards inflation, which despite showing signs of cooling down, remains at high levels. This has dampened market sentiment, reducing the likelihood of an interest rate cut in the near future and contributing to the bearish trend in the crypto market.