Hawkish FOMC Minutes Trigger Crypto Sell-Off — BTC, ETH, XRP Weaken
Hawkish minutes from the Federal Open Market Committee signaled that disinflation may be slower and more uneven than expected, reducing the likelihood of imminent rate cuts and leaving the door open to further hikes. The language pushed Treasury yields higher and tightened financial conditions, prompting renewed selling pressure across high-beta crypto assets. Bitcoin (BTC) pulled back toward $65,000 before stabilizing near $66,800, trading below its 50-day SMA (~$82,600) with RSI around 34. Immediate support is at $64,000 and $60,000; resistance at $70,000 and $75,000–$76,000. Ethereum (ETH) consolidated near $1,960 after an early-February sell-off; support at $1,900 and $1,800, resistance at $2,050 and $2,200. XRP (XRP) traded around $1.41, below the mid-Bollinger (~$1.46) with upper resistance near $1.65; supports at $1.35 and $1.25. Market takeaway for traders: reduced odds of near-term rate cuts and rising yields increase downside risk for risk-on crypto positions — expect higher volatility, short-term bearish pressure on BTC/ETH/XRP, and key levels listed for trade planning.
Bearish
The FOMC minutes conveyed a hawkish stance: slower-than-expected disinflation, meaningful risk of inflation remaining above target, and participants open to further hikes. That reduced the odds of imminent rate cuts and pushed Treasury yields higher. Historically, rising yields and tighter liquidity are bearish for high-beta risk assets, including cryptocurrencies. The article reports renewed selling in BTC, ETH and XRP, with technicals showing BTC below its 50-day SMA and RSI in weak territory — classic short-term bearish signals. For traders: expect elevated volatility and downside risk in the near term. Short-term strategies may include reducing long exposure, tightening stops, or favoring short/inverse instruments and stablecoins. Over the medium-to-long term, if inflation and growth data later improve and the Fed shifts back toward easing, crypto could recover; however, sustained higher rates would keep a cap on risk-asset rallies. This mirrors past episodes (e.g., 2022 rate-hike cycles) when hawkish Fed guidance pressured crypto prices and produced prolonged drawdowns before recovery once policy eased.