Bitcoin Holds Near $114K as Fed Minutes Signal Inflation-Led Rate Path
Bitcoin (BTC) and the rest of the crypto market held steady Wednesday after the Federal Open Market Committee (FOMC)...
Quick overview
- Bitcoin and the crypto market remained stable after the FOMC released its July meeting minutes, indicating inflation data will guide future interest rate decisions.
- The July inflation report showed a Consumer Price Index of 2.7% and a significant Producer Price Index increase, suggesting price pressures may delay rate cuts.
- The upcoming September jobs report is crucial, as a strong report could support holding rates while a weak one may revive the case for cuts.
- Despite the Fed's hawkish tone, Bitcoin's price remained steady, with investors now looking to Fed Chair Jerome Powell's upcoming speech for further insights.
Bitcoin (BTC) and the rest of the crypto market held steady Wednesday after the Federal Open Market Committee (FOMC) released its July meeting minutes. Officials said inflation data will be the guide for interest rate decisions going forward, not unemployment numbers.
This is a change from September 2023 when a weak labor market was the reason for potential rate cuts. Analysts at the Kobeissi Letter warned that relying on inflation as the benchmark will delay rate cuts.
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Bitcoin's steady near $114K is locking in gains as the market digests Fed minutes pointing to inflation worries over job data—consolidation mode for now, with altcoins like Ripple and Dogecoin feeling the…
— Crypto Daily Alpha (@CryptoNews4A) August 21, 2025
The July inflation report shows this challenge:
- Consumer Price Index (CPI): 2.7%
- Producer Price Index (PPI): 0.9% month-over-month, the biggest jump in over three years.
This means price pressures will keep the Fed from easing too soon.
Labor Market Adds Complexity
The FOMC met before the latest jobs report so policymakers didn’t have the full picture of the labor market. The U.S. added 73,000 jobs in July but downward revisions for May and June erased 258,000 jobs combined.
📈 Bitcoin holds near $114K as Fed minutes highlight inflation risks over jobs. Bitcoin stays near $114K as Fed minutes highlight inflation risks, tariff pass-through, stablecoin growth, and policy dissent.
— Crypto News 📰 (@btc_af) August 21, 2025
This sets up the September 5 jobs report to be huge. A strong print will make the case for holding rates, a weak print will revive the case for cuts.
There are divisions within the Fed. Governors Christopher Waller and Michelle Bowman wanted a rate cut in July, most others wanted to keep rates steady. This is the first time in over three decades multiple governors dissented on a rate decision.
Bitcoin Steady Ahead of Jackson Hole
Despite the hawkish tone of the Fed minutes, Bitcoin didn’t budge. It dipped below $113,000 but recovered to $114,000 by press time.
The rest of the altcoin market also moved up:
Now investors are looking to Fed Chair Jerome Powell’s Jackson Hole speech on Friday to get clues on the Fed’s September stance.
For crypto traders, the Fed’s emphasis on inflation means one thing: Bitcoin’s price is increasingly tied to monetary policy, so upcoming economic data is key to market direction.
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