The Federal Reserve said that inflation may be difficult to contain under Trump's support for BTC policy.

BTC fell on Wednesday, but after the Fed hinted at a slow interest rate cut this year, the BTC price did not show too much Fluctuation.

Article author: Mat Di Salvo

Source: Decrypt

Article compilation: Ada, MetaEra

After the Federal Reserve released the minutes of the December meeting, BTC and other major cryptocurrencies did not experience significant Fluctuation on Wednesday. However, the Fed hinted that with the inauguration of the new president, Donald Trump, inflation may be more severe than expected.

Minutes from the meeting released by the US Federal Reserve on Wednesday noted that the 'potential impact of changes in trade and immigration policies' could keep the inflation rate above the target level of 2%.

The official of the institution said that they will be more cautious in lowering borrowing costs in 2025.

According to CoinGecko, the current price of Bitcoin is around $93,800. In the past 24 hours, its price has dropped by more than 3%, but most of the decline occurred before the release of the Federal Reserve meeting minutes.

The seventh largest cryptocurrency, Dogecoin, fell by more than 4% in the past 24 hours, trading at $0.337, while the major cryptocurrencies Ethereum and Solana are currently down by 4% and 5% respectively.

The US stock market is also relatively stable. Traders are now waiting for more information on Friday, when new job data is expected to show a decline.

Despite claiming to help ordinary Americans save money, President-elect Trump is keen on trade tariffs, which some economists suggest could exacerbate inflation. However, The Washington Post reported this week that his team is considering even stricter tariffs than originally planned - a claim that Trump himself denied afterwards.

Assets with higher risks such as BTC and technology stocks largely benefit from low interest rates. Due to lower borrowing costs, investors are more likely to allocate funds to assets with greater price Fluctuation.

The US Federal Reserve will raise interest rates significantly in 2022 in an attempt to curb inflation after the COVID-19 pandemic. Therefore, when the Fed finally lowered interest rates in September, Bitcoin was boosted.

In December, BTC hit a new all-time high of over $108,000 per coin. Similar to stocks, BTC also surged due to Trump's victory in the November election, as the new president has positioned himself as a BTC-friendly leader who will support the digital asset industry and relax regulations on Wall Street.