Key Points
- The FOMC minutes for the July 30-31 meeting confirmed a majority of Fed officials support an interest rate cut in September.
- Bitcoin’s price briefly surpassed $61K following the news, with Open Interest increasing by nearly $2 billion.
The July 30-31 meeting minutes of the Federal Open Market Committee (FOMC) were recently released. The document confirmed that most Federal Reserve officials are in favor of an interest rate cut in September.
Fed Officials Agree on Interest Rate Cut
The minutes eliminated any uncertainty regarding potential interest rate cuts in the upcoming month. The majority of Federal Reserve officials concurred that inflation has somewhat subsided. Macroeconomic data like this often triggers price fluctuations in the cryptocurrency market. Bitcoin, for instance, broke the psychological barrier of $60,000.
According to the meeting minutes, this will be the first Fed rate cut since 2020. Some members even showed willingness to support a 25 basis point cut during the July meeting. The officials noted that although inflation remains high, it has significantly decreased and is on track to reach the 2% target.
Bitcoin Reacts to FOMC Minutes
Following the release of the FOMC minutes, Bitcoin’s price increased by 2.6%, reaching $61,189 before settling down to $60,890.81. Trading volumes of Bitcoin also saw a 26% increase, as per CoinMarketCap data. The rise in the price of Bitcoin coincided with an increase in buying pressure, as indicated by the Chaikin Money Flow (CMF) index.
Despite the positive signs, the uptrend remained weak according to the Awesome Oscillator (AO). The AO was positive on the hourly chart and turned green at press time, indicating an uptrend. However, further confirmation is required to validate its strength.
Data from Coinglass revealed a nearly $2 billion increase in Open Interest from approximately $30 billion on August 21st to $32 billion at press time. Bitcoin’s main resistance continues to be in the $64K-$66K range, as most coins were purchased at these levels. As a result, sellers might emerge once Bitcoin approaches this price range.
