Bitcoin Falls Below $67,000 as Hawkish Fed Minutes Weigh on Crypto
Bitcoin extended its recent decline on Thursday after minutes from the Federal Reserve’s January meeting signaled growing uncertainty over the future path of U.S. interest rates. The hawkish tone in the report added pressure to cryptocurrency markets, which are highly sensitive to monetary policy expectations.
By 01:06 ET (06:06 GMT), Bitcoin had dropped 1.3% to $66,963.8.
Fed Minutes Spark Rate Concerns
The Federal Reserve’s latest meeting minutes revealed divisions among policymakers regarding inflation and long-term interest rate strategy. While many officials supported keeping rates steady, several members indicated that further rate hikes could be necessary if inflation remains persistent.
The minutes also highlighted debate over the economic impact of artificial intelligence. Some policymakers see AI boosting productivity and easing inflation pressures, while others worry about potential financial risks and uncertain growth effects.
For crypto investors, the possibility of higher interest rates is a negative signal. Rising borrowing costs typically reduce demand for speculative assets such as Bitcoin, prompting traders to shift toward safer holdings like the U.S. dollar.
Geopolitical Tensions Add to Market Pressure
Cryptocurrency prices were also weighed down by increased risk aversion linked to escalating tensions between the United States and Iran. While gold benefited from safe-haven demand, crypto assets failed to attract similar flows.
Despite Bitcoin’s historical correlation with technology stocks, digital assets lagged behind a recent rally in global tech shares.
Goldman Sachs CEO Comments on Bitcoin
Goldman Sachs CEO David Solomon said he personally owns very little Bitcoin but continues to monitor the asset closely. Speaking at the World Liberty Forum, Solomon noted his interest in how cryptocurrencies could shape the broader financial system.
Although Goldman Sachs has maintained a cautious stance toward digital assets, Solomon suggested the bank could expand its involvement in crypto, particularly if regulatory clarity improves under President Donald Trump’s administration.
Altcoins Remain Weak Ahead of Key Inflation Data
The broader cryptocurrency market remained under pressure, with most altcoins trading in a narrow range after months of heavy losses.
Investors are now focused on upcoming U.S. economic data for further direction, particularly the Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation measure, due Friday.
Among major tokens, Ether fell 1.1% to $1,980.99, while XRP declined nearly 4% to $1.4228. Solana, Cardano, and BNB dropped between 0.4% and 3%. Meme coins also weakened, with Dogecoin falling 2.5% and $TRUMP sliding 1.7%.
With interest rate uncertainty and geopolitical risks still elevated, crypto markets remain highly sensitive to incoming economic signals.
