Fed minutes revive ‘higher-for-longer’ fears; Bitcoin slips as Robinhood L2 sees 4M testnet tx
The Federal Reserve minutes signalled policymakers remain concerned about inflation, pushing markets to reprice expectations for interest-rate cuts and reviving a “higher-for-longer” outlook. Crypto market cap fell to about $2.25T as risk assets dipped: Bitcoin slipped below $67,000 and ether fell roughly 2–3%. Traders reacted to rising Treasury yields and weaker equity sentiment, underscoring that macro data (CPI and Fed speakers) will drive near-term price action. Separately, Robinhood launched a testnet for its Ethereum Layer-2 and recorded about 4 million test transactions in its first week. While testnet activity can be bot-driven and doesn’t equal user adoption, the volume signals strong developer and market interest in tokenized real-world assets and infrastructure upgrades that could change settlement, trading hours and custodial flows if adopted. Memecoin rallies (e.g., PEANUT, DUCKY) showed continued speculative micro-momentum but are peripheral to macro-driven moves. Key watchpoints for traders: upcoming US inflation prints and Fed commentary (will determine whether the dip extends), asset-specific liquidity, and any signals of real adoption from Robinhood’s L2 tests. Primary keywords: Fed minutes, interest rates, Bitcoin, Ethereum, Robinhood L2, testnet transactions.
Bearish
The Fed minutes reintroduced a “higher-for-longer” interest-rate expectation, prompting repricing across risk assets. Historically, similar Fed-driven repricings (when rate-cut timing is pushed back) have led to short-term downside in crypto as liquidity-driven multiple expansion stalls. The immediate market reaction — BTC falling under $67k, ETH down ~2–3%, and rising Treasury yields — fits that pattern. Short-term: expect increased volatility and potential further downside if upcoming CPI prints are hot or Fed speakers reiterate hawkish stances. Traders should watch funding rates, spot/derivatives flows, and liquidation clusters. Long-term: the news is neutral-to-bearish for speculative momentum but not for crypto’s structural narratives; infrastructure developments like Robinhood’s L2 testnet (4M tx) point to continued product progress that could be bullish if it leads to real adoption of tokenized assets and better liquidity channels. In sum, macro-driven pressure is likely to dominate prices in the near term (bearish), while developments in infrastructure remain a medium/long-term constructive factor if they translate into on-chain usage and flows.