Crypto prices pare initial gains after Fed minutes show a slow down 'soon'

Quick Take

  • Crypto markets rose in anticipation of the release of the FOMC’s Nov. 1-2 meeting minutes, only to come back down afterward to previous levels. 
  • The policy committee minutes indicated that the increase in interest rates will soon start to slow down.
Bitcoin was trading at around $16,500 at the time of publication, while the total crypto market cap was at around $781 billion, according to data from TradingView.
The DXY extended losses, shedding 0.92% to trade at $106.165 as of 2:43 PM ET. A weaker U.S. dollar is positive for bitcoin, since its price in dollars moves higher when the dollar weakens.

DXY chart by TradingView

Following the policy team's last meeting, the Fed increased interest rates by 75-basis points for the fourth consecutive time. The committee chair and head of the Fed Jerome Powell sent markets into a tizzy in his ensuing press conference. Chair Powell said the ultimate level of rates will be higher than previously expected. 

The odds of the FOMC increasing rates by 50 basis points at the meeting on Dec. 14 appear to be 76%, according to the CME's FedWatch tool.

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