Bitcoin jumped slightly on the Release of the Federal Reserve’s minutes from its November meeting, with the discussion captured suggesting that the central bank may make smaller interest rate increases going forward.
The stock market also rose as traders digested the news.
The largest cryptocurrency by market capitalization was trading at $16,498 at the time of writing, according to CoinGecko, a 24-hour increase of 2.6%.
Ethereum also rose in value: the second-largest digital asset rose 3.3% over the past day, trading for $1,169.
The rest of the market also surged, including the ninth-largest cryptocurrency and Elon Musk’s favorite Dogecoin, which rose 4.8% in 24 hours, trading for $0.08.
Generally, Bitcoin – and the broader crypto market – has followed US stocks this year. Indeed, digital assets are considered riskier assets by traders.
Trader Ryan Scott said Decrypt the increase was expected. “This seems to match market expectations. Short-term traders positioned themselves aggressively behind the release, briefly driving crypto and stock index futures,” he said.
As the Federal Reserve raised interest rates to rein in soaring inflation, investors were keen to shift risk and put their money in safe havens like the US dollar.
While the dollar has climbed in value this year, it suffered losses against the yen and the euro after the release of today’s minutes.
Overall, the meeting notes showed there might be some light at the end of the tunnel. “A substantial majority of participants felt that a slower pace of increase would likely soon be appropriate,” Wednesday’s minutes read.
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