Hawkish Fed Minutes Stall Crypto Rebound as Inflation Concerns Take Center Stage
Cryptocurrency markets pulled back on Wednesday after newly released minutes from the Federal Reserve’s July meeting revealed that policymakers remain primarily focused on inflation risks — temporarily halting a modest recovery in digital assets.
According to the minutes, “a majority of participants judged the upside risk to inflation as the greater of these two risks,” with several members citing uncertainty over tariffs and the threat of unanchored inflation expectations.
The market reacted quickly. Bitcoin (BTC), which had been up 0.7% earlier in the day, slipped back toward flat, hovering around $113,300. Ether (ETH), which had led major tokens with a 4.5% gain, also lost momentum and was last up just 2.3% at $4,270.
Fed Minutes May Be Outdated
Importantly, the July meeting occurred prior to the release of the August 1 jobs report — a key update that showed not only a slowdown in hiring for July but also a substantial downward revision of 258,000 jobs across May and June.
Had those figures been available during the meeting, the tone of the minutes — and potentially the policy outlook — might have shifted. Some analysts believe the Fed may have leaned toward a more dovish stance or even entertained the idea of a rate cut.
Focus Turns to Jackson Hole
Despite the Fed minutes, investors remain focused on Federal Reserve Chair Jerome Powell’s upcoming speech at the Jackson Hole Economic Symposium later this week — a venue that has historically served as a stage for major policy hints.
Markets will be watching closely to see whether Powell maintains a hawkish stance or begins laying the groundwork for easing later this year.
With key economic data — including fresh inflation and employment figures — due before the Fed’s September meeting, most traders expect Powell to keep his options open and adopt a wait-and-see tone on future rate moves.
