According to the minutes released Wednesday, the US Federal Reserve (FED) appears ready to raise interest rates and lower its balance sheet. These minutes consisted of the minutes of the meeting that took place on 25 and 26 January 2022. Before starting the article, it is worth noting that the Bitcoin and altcoin ecosystem, which has not been in the FED minutes since the middle of 2021, is on the agenda this time. As Kriptokoin.com, we are giving the details…
Bitcoin and altcoins were included in the minutes of the FED
According to the January meeting minutes of the Federal Open Markets Committee (FOMC), Fed officials stated that they were “expected inflation. He agreed that it would be appropriate for the committee to repeal policy adjustment faster than they currently anticipate. They also noted that “a significant reduction in the balance sheet size would probably be appropriate.” The Fed has increased its total assets from about $4 trillion in early 2020 to around $9 trillion now through asset purchase programs.
The cryptocurrency market, including stablecoins, was a topic discussed at the Fed’s January meeting for the first time since July 2021. In the meeting brief, Fed officials expressed concern about the significant growth of the crypto industry, saying that “some participants saw emerging risks to financial stability in conjunction with the rapid growth in cryptocurrencies and decentralized finance (DeFi) platforms.”
Stablecoins mentioned
Regarding stablecoins, the Fed mentioned a potential operating risk, calling these coins “another vulnerability in the funds markets”. While the minutes are widely watched across the country, traders are focused on the next meeting in March in anticipation of a rate hike. In the previous interest announcements, the prices of Bitcoin and altcoins were also affected, along with other assets. This time around, a slight increase was observed in BTC price as the tone of the authorities was seen as softer.
The Fed wasn’t the only one criticizing crypto this week. Senate Banking Chair Sherrod Brown denounced the Super Bowl commercials at a hearing on Tuesday and said they did not warn investors of the potential risks of putting money into the popular asset class. This week’s Super Bowl was marked by the advertisements of famous crypto money companies such as Crypto.com and Coinbase, and even Coinbase’s site crashed.
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