Bitcoin Rangebound Below $29K: Traders Uncertain on FED

Major cryptocurrencies faced selling pressure on Thursday following the release of the Federal Reserve’s latest meeting minutes. Investor concerns about the economic outlook weighed on digital asset prices.

BTC fell around 2.6% to trade at $28,289, based on data from CoinMarketCap. The decline of Bitcoin began after the minutes from the Fed July policy meeting were published. The minutes outlined the central bank’s thinking around future interest rates.

Fed’s tighter monetary policy signal caused Bitcoin price to drop

The Fed is signaling its commitment to tighter monetary policy to combat inflation. As a result, Bitcoin and other cryptocurrency traders seem cautious about the potential for slowing economic growth. The declining prices across the crypto market on Thursday reflect ongoing uncertainty around how digital assets will perform in the current macroeconomic environment.

Data from Coin Metrics shows that the correlation between Bitcoin and stocks is at its lowest in two years.

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Data from the analytics firm Kaiko shows that the 90-day price volatility for Bitcoin and ether has declined to multi-year lows of 35% and 37%, respectively. This means that over the past three months, the fluctuation in prices for the top two cryptocurrencies by market capitalization has been more muted compared to typical levels.

Furthermore, the whole cryptocurrency market is trading in the red. The global crypto market cap dropped by 2.29% in the last 24 hours and stands at $1.13 trillion. Due to the Fed tightening policies, cryptocurrencies such as Bitcoin are seeing negative impacts.