- FOMC minutes have signaled that a rate hike could be on the table.
- The crypto market has lost 1.55% in market cap.
- Rate is unchanged at 3.50%-3.75%.
Meeting minutes by the Federal Open Market Committee (FOMC) have hinted at a possible rate hike. This comes despite a drop in inflation and at a time when the crypto market is attempting to find a bullish momentum. The focus, as stated, could be on choosing inflation or the labor market before taking a call.
FOMC Minutes Signal Rate Hike
The US January 2026 inflation dropped to 2.40%, closer to the target of 2%; however, Federal Reserve officials have indicated that rate cuts could be paused for some time. This was speculated – what was now speculated was that a rate hike could be on the table.
Minutes from the Jan 27-28 meeting have opened up a possibility for the same.
A debate is expected to happen over which sector should have more focus, inflation or the labor market. Officials are seeking a balanced inflation level before slashing the rate, per a report by CNBC. The summary has said that a downward adjustment would be likely if inflation were to decline according to expectations.
Simply put, there is a chance for the Federal Reserve to keep the rate steady. If anything, there could be a discussion around upward adjustment to better reflect a two-sided description on the interest rate decisions of the Committee.
San Francisco Federal Reserve President Mary Daly recently cited something similar, saying that the US central bank still needs to get inflation down.
Current Situation
The federal rate is between 3.50% and 3.75%, with US President Donald Trump earlier calling out the need to lower the lending rate. The last cut was announced in December 2025, and the rate has remained unchanged since then.
Attention is on the labor market because the unemployment rate has dropped only slightly to 4.3% in January 2026 from 4.4% in December 2025. Some relief has come up in the form of an increase by 130k in non-farm payroll. A slight misjudge or calculation could take inflation away from the target value of 2%.
Trouble in Crypto Market?
The crypto market is familiar with volatility and uncertainty. But, a rate hike could shrink investors’ appetite to allocate their funds to the sector. For now, Coinglass has reported a total liquidation of $38.73 million in the last 12 hours. This consists of $22.08 million in long and $16.66 million in short.
BTC has seen more short liquidations during this time. The figure stands at $7.01 million, out of the individual total value of $9.56 million. This has left $2.55 million in long. The market has collectively shed 1.55% of its value in terms of market cap, with a shift to 11 points in FGI.
Highlighted Crypto News Today:
South Korea Recovers $21.4M in Seized Bitcoin After Hack
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Federal Reserve Governor Miran: If secondary inflation effects and wage increases occur, rate hikes may be needed, but there is currently no necessity for rate hikes
Gate News reported that on March 23rd, Federal Reserve Governor Barr stated that rate hikes may be necessary if second-round inflation effects and wage increases occur. However, he also pointed out that he does not currently believe it is necessary to consider rate hikes.
GateNews1h ago
CoinShares: Digital asset investment products saw inflows of $230 million last week, with Bitcoin inflows of $219 million
CoinShares' latest weekly report shows that digital asset investment products saw a net inflow of $230 million last week, but due to the Federal Reserve's hawkish stance, approximately $405 million flowed out following the FOMC. The United States saw inflows of $153 million, Germany $30.2 million, and Switzerland $27.5 million, with Bitcoin dominating inflows. Solana has seen consecutive net inflows for 7 weeks, but Ethereum saw outflows of $27.5 million last week.
GateNews2h ago
CFTC Sets 20% Capital Charge for Bitcoin and Ethereum Collateral
The Commodity Futures Trading Commission (CFTC) has taken a clear step toward integrating cryptocurrencies into traditional finance. In its latest guidance, the regulator allows Bitcoin and Ethereum to be used as collateral in derivatives trading while applying a 20% capital charge to manage
Coinfomania2h ago
Gold Price Plummets 25%! Peter Schiff Points Finger at Fed Missteps, Fate of Safe-Haven Assets Draws Attention
On March 23rd, gold prices plummeted approximately 25%, falling below $4,200 per ounce, with over $10 trillion wiped from market value. Despite tensions between the US and Iran and rising inflation, the market engaged in heated discussions about the reasons for the gold price decline. Analysts pointed out that this selloff may be related to high interest rates and shifts in market sentiment, with future focus on macroeconomic data and the Federal Reserve's policy direction.
GateNews4h ago
Fidelity Urges SEC to Fast-Track Crypto Market Integration
Fidelity says U.S. market infrastructure can support crypto trading under existing laws without building new systems.
Firm backs SEC Crypto Task Force efforts, stressing collaboration to address technical and regulatory challenges.
Integration into regulated systems could expand access
CryptoFrontNews5h ago
Market expects a 50% probability that the ECB will raise rates four times in 2026
Gate News reported that on March 23rd, the market raised expectations for ECB rate hikes, with pricing showing a 50% probability that four rate hikes are currently expected to be implemented in 2026, and the possibility of further rate hikes is rising.
GateNews5h ago
