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The post FOMC Minutes Signal “Higher for Longer” Rates, Pressuring Bitcoin and Crypto Markets appeared first on Coinpedia Fintech News Bitcoin and the broader cryptocurrency market are entering the New Year under pressure after the Federal Reserve released the minutes from its December policy meeting. While the Fed delivered a rate cut last month, the message that followed was far less supportive for risk assets. Policymakers made it clear they see little urgency to ease further anytime soon. FOMC Minutes Update: Rate Cuts Take a Back Seat, for Now The December minutes suggest the Fed is comfortable hitting pause after its recent 25-basis-point cut. Several officials said holding rates steady for a while would allow time to measure the delayed impact of earlier easing on both inflation and the labor market. While markets had already ruled out a January cut, the minutes also dampened hopes for a quick move in early 2026. According to interest rate futures, a cut in March now looks unlikely, pushing realistic expectations toward April at the earliest. This “higher for longer” outlook is weighing on investor confidence across risk assets, including crypto. Several Fed members pointed to recent inflation readings as a positive sign. Consumer price data for November showed headline inflation easing to 2.7% year over year, with core inflation at 2.6%, both below expectations. These figures suggest inflation is edging closer to the Fed’s long-term 2% target. That said, not everyone is convinced the trend is fully reliable. Some officials warned that recent data may be distorted, particularly due to temporary factors like the US government shutdown. Because of this uncertainty, policymakers are hesitant to rush into further cuts without sustained confirmation. Why it matters for Bitcoin  Bitcoin has spent recent weeks trading in a narrow band between roughly $85,000 and $90,000. Repeated…

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Filed under: News - @ December 31, 2025 5:18 am