Bitcoin extended its recent downturn on Thursday, dropping below the $67,000 level after minutes from the Federal Reserve’s January meeting signaled a more hawkish stance and added fresh uncertainty around the outlook for U.S. interest rates.
Broader crypto markets were also pressured by a cautious risk environment, as rising geopolitical tensions between the United States and Iran dampened appetite for speculative assets. In contrast, gold attracted safe-haven flows.
At 01:06 ET, Bitcoin (COIN:BTCUSD) was down 1.3% at $66,963.8.
Digital assets also failed to keep pace with gains in global technology equities, despite their usual correlation with the sector.
Rate outlook weighs on crypto sentiment
Bitcoin remained under strain as investors digested the Fed minutes, which offered little comfort regarding the direction of monetary policy.
The record of the January meeting revealed growing differences among policymakers over the longer-term trajectory of rates and inflation. “Several” officials indicated that additional rate increases could be appropriate if inflation proves persistent.
Policymakers also discussed uncertainty surrounding the economic implications of artificial intelligence, with differing views on whether the technology will ultimately boost or hinder growth.
The renewed mention of potential rate hikes unsettled crypto traders, as higher borrowing costs typically reduce demand for speculative investments such as Bitcoin. Following the release of the minutes, flows appeared to shift toward the U.S. dollar.
Goldman Sachs chief downplays personal Bitcoin exposure
Goldman Sachs (NYSE:GS) CEO David Solomon said he personally owns very little Bitcoin, though he continues to monitor the asset and its evolving role in financial markets.
While Goldman has taken a measured approach to digital assets, Solomon has previously expressed interest in the sector’s long-term potential.
Speaking at the World Liberty Forum on Wednesday, he suggested the bank could consider expanding its involvement in cryptocurrencies, particularly if regulatory clarity improves under the Donald Trump administration.
Altcoins subdued ahead of key inflation data
Elsewhere, the broader crypto complex traded in a tight range, with limited positive catalysts to drive momentum. Like Bitcoin, most altcoins have experienced significant declines in recent months amid a broad cooling in investor enthusiasm.
Market attention is now turning to upcoming U.S. macroeconomic data for further guidance on interest rate policy. Of particular importance is Friday’s release of the Personal Consumption Expenditures (PCE) price index, the Fed’s preferred measure of inflation.
Ether, the second-largest cryptocurrency by market capitalization, fell 1.1% to $1,980.99, while XRP dropped nearly 4% to $1.4228.
Solana, Cardano and BNB posted losses ranging from 0.4% to 3%.
Among meme tokens, Dogecoin declined 2.5%, and $TRUMP retreated 1.7%.
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