Federal Reserve Focuses on AI Investment; Pressure on Bitcoin Continues

Bitcoin came under selling pressure following the release of the Federal Reserve's meeting minutes from June. The minutes revealed that Federal Reserve officials have differing views on interest rates, but ultimately agreed to keep rates steady in the range of 3.50% to 3.75%. Nine out of 19 Federal Reserve officials expect at least one rate hike to occur by the end of 2026, which is considered a hawkish signal for the markets and led to a drop in Bitcoin's price to $62,310. The Federal Reserve's primary concern is inflation, and factors such as trade tariffs and energy costs in the Middle East could keep inflationary pressures elevated. Federal Reserve officials believe that in the short term, demand for data centers and advanced equipment will increase costs. This situation has led investors to take the possibility of sustained high interest rates more seriously, resulting in reduced risk appetite among traders. The next direction for cryptocurrencies depends on inflation data, labor market conditions, and the strength of the dollar. If subsequent statistics indicate that inflation remains unchecked, the likelihood of continued corrections and loss of short-term support increases.

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