Following the release of the Federal Reserve's meeting minutes from its July meeting, which said that the organization would keep raising interest rates to control inflation, the price of cryptocurrencies fell today. At the time of writing, the largest cryptocurrency by market capitalization was trading for $23,303. According to data from CoinGecko, the price of Ethereum, the second-largest digital asset, was $1,844.
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The news also caused a decline in the stock market, the Dow Jones lost 0.1%, the S&P 500 lost 0.2%, and the Nasdaq lost 0.6%.
Despite a robust job market and extremely low unemployment, the inflation rate was still too high, according to the minutes from the US central banking authority's meeting on July 26–27, and there was no sign that it would soon go down.
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Participants noted that inflation was still too high and substantially beyond the Committee's long-term objective of 2 percent, according to the minutes.
It also said that future data would determine when it would be necessary to "at some point" slow the rate of rate hikes.
Most cryptocurrency owners have traded their holdings for "risky" investments like tech stocks, choosing instead to cling on to their U.S. dollars. This has contributed to the steady ascent of the dollar, the world's main reserve currency.
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Fears of high interest rate hikes return…bad for risk assets. We will see if the Fed really moves that hard the next months. I doubt it.
We would see how it will go just a matter of time