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Bitcoin (BTC) remained in negative territory, dropping below $61,000 even after the Federal Reserve’s accommodating comments in the Federal Open Market Committee’s (FOMC) minutes released on Oct. 9.
At the time of writing, BTC was priced at $60,935, reflecting a 2% decrease over the last 24 hours.
The FOMC minutes indicated that a “substantial majority” of members favored a 50 basis point decrease in US interest rates this year, which would lower the rate to a range of 4.75% to 5%.
While a minority advocated for a smaller reduction of 25 basis points, expressing concerns that a larger cut might be seen as premature, proponents of the larger cut argued that it was more in line with recent inflation and labor market indicators.
Additionally, they stressed that this adjustment would support economic and labor market stability while continuing to make progress towards the 2% inflation target.
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Other major altcoins mirrored Bitcoin’s lackluster price movement, with Ethereum (ETH) decreasing by 1% over the past day, followed by Solana (SOL) which fell by 2.5%, and BNB Coin (BNB) which dropped by 2.3%.
Despite the absence of bullish momentum in the cryptocurrency market, futures open interest surged notably after the FOMC meeting.
In contrast, the US equities market responded positively to the minutes. The S&P 500 rose by 0.68% on the day and is approaching a new all-time high, while the Nasdaq Index increased by 0.5% and is currently at its highest level since the early September downturn.
Andrew Kang, co-founder of the venture capital firm Mechanism Capital, remarked that the divergence between the performance of crypto and equities in relation to rate cuts is expected.
Kang noted that equities are more closely tied to US interest rate policies since rate cuts enhance the value of cash flows and established corporate debt markets that finance growth; thus, equities surged following the release of the minutes, while crypto continues to lag behind.
Traders are currently in a state of uncertainty and are likely awaiting US economic data scheduled for release on Oct. 10 before making a more definitive decision.
The post Bitcoin dips below $61K despite Fed’s dovish stance appeared first on CryptoSlate.
