The value of Bitcoin appears to be on a positive trajectory for the upcoming quarter. Having already surpassed $30k, numerous analysts predict that it will continue to rise and enter a bull market.
However, the dream of Bitcoin moving further to a new price level is already in shambles. Hawkish statements from the Federal Reserve have broken the positive wave in Bitcoin price history. When the Federal Reserve makes "hawkish" statements, it simply means they are about to take or make a policy restricting several financial assets.
In simpler terms, hawkish statements from the Federal Reserve may have an impact on a volatile financial asset such as Bitcoin. These statements are usually made to control rising inflation through tight monetary policies on the fiat level.
As a result, the crypto industry often experiences losses when the Federal Reserve makes a hawkish statement. Therefore, their verbal communications and announcements are closely monitored to understand their intentions.
Following their verbal communications usually reveal if they are about to make a strict monetary policy. So the public statements by key policymakers such as the Federal Reserve chairman or the minutes of Federal Open Market Committee (FOMC) meetings are often followed closely for more detailed observation.
In most cases, the words that come from these prominent figures might reveal their assessment of the country's economy and its future intentions. For instance, their statements can easily be used to predict what the government plans to do next month.
Bitcoin Negatively Impacted by New Federal Reserve Minutes
The officials presiding over the Federal Reserve had their June meeting, and the minutes were released on Wednesday. The content of the minutes is what is affecting Bitcoin negatively. Most of the officials at the meeting were hesitant about hiking the rates.
According to the officials, "leaving the target range unchanged at this meeting would allow them more time to assess the economy's progress toward the Committee's goals of maximum employment and price stability."
However, there were some disagreements as some officials still expect a few rate hikes before the year ends.
"The participants favoring a 25 basis point increase noted that the labor market remained very tight, momentum in economic activity had been stronger than earlier anticipated, and there were few clear signs that inflation was on a path to return to the Committee's 2 percent objective over time," the minutes said. The expected rate increase is part of the factors affecting Bitcoin's value at the moment.
Crypto Analysts Optimistic
Despite the instability with the Federal Reserve decision, crypto experts like Antoni Trenchev, co-founder of Nexo, are still optimistic about its price increase. Their major standpoint lies with the influx of new Exchange-Traded Fund (ETF) applications on Bitcoin.
Recently, Blackrock made the news with their latest Bitcoin spot ETF application. Even the CEO of Blackrock, Larry Fink, has made many positive statements about cryptocurrency. At one point, he even called Bitcoin a "digital gold." Despite the Federal Reserve's indecision with their rate hike, it is expected that other market elements favor Bitcoin's price.