Bitcoin Falls as Dollar and Bonds Rally After Hawkish Fed Minutes

Bitcoin has emerged as the biggest underperformer since the release of the FOMC minutes for the January 28 meeting, while the US dollar index and bonds rallied. Equities showed modest gains, with the Dow Jones Industrial Average up 0.24%, the S&P 500 up 0.59%, and the NASDAQ up 1.00%.

The minutes revealed a deeply divided Federal Reserve. Almost all policymakers supported maintaining the federal funds rate at 3.50–3.75%, though a couple preferred a 25-basis-point cut, citing restrictive policy and labor market risks. Several officials said further rate cuts could be warranted if inflation declines as expected, while others warned that easing too early amid elevated inflation could compromise the Fed’s 2% target.

Participants also highlighted risks in private credit and broader market vulnerabilities, and some favored "two-sided" guidance noting rates might need to rise if inflation remains above target.

United States

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