- 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
Bank of Japan Maintains Interest Rate at 0.75% Unchanged, Crypto Market Declines 4.47%
The Bank of Japan decided to maintain its benchmark interest rate at 0.75% unchanged, marking the second pause in rate hikes since last year. This move led to a 4.47% decline in the total cryptocurrency market capitalization, with Bitcoin price falling to $70,223, and mainstream cryptocurrencies experiencing widespread declines as market volatility is affected by global uncertainties.
GateNews32m ago
The Bank of England maintains the benchmark interest rate at 3.75%, holding steady for the second consecutive time
Gate News reported that on March 19th, the Bank of England announced it would maintain its benchmark interest rate at 3.75% unchanged, in line with market expectations, marking the second consecutive hold on interest rates.
GateNews40m ago
European Central Bank Expected to Hold Rates Unchanged for Sixth Consecutive Meeting
Gate News: On March 19, the European Central Bank (ECB, the central bank of the eurozone) is expected to maintain its benchmark interest rate unchanged for the sixth consecutive time at the upcoming monetary policy meeting.
GateNews1h ago
Bitcoin drops back to $70,000, the Federal Reserve keeps interest rates steady, and Middle East geopolitical tensions drive oil prices higher
On March 19, Bitcoin pulled back to $70,000, while Ethereum declined to $2,160. The Federal Reserve maintained interest rates unchanged, oil prices rose, and Iran's attack on Gulf energy facilities drove crude oil and natural gas prices to surge. The crypto market saw liquidations of nearly $600 million in positions, with the majority being long positions. Market futures open interest decreased, and mainstream coin funding rates turned negative.
GateNews1h ago
US stock index futures remain stable, with Dow Jones futures at 46,530 points, as Federal Reserve stance turns hawkish
Gate News: On March 19, U.S. stock market futures remained stable. Dow Jones Industrial Average (DJIA) futures traded near 46,530 points, while S&P 500 Index futures traded near 6,670 points. Previously, the Federal Reserve's policy stance turned hawkish.
GateNews2h ago
European Central Bank Launches Digital Euro ATM and Payment Terminal Working Group, Plans Pilot Launch in 2027
The European Central Bank announced on March 19 the opening of two new working groups to advance the implementation of the digital euro at ATMs and payment terminals, establishing relevant standards and testing procedures. A digital euro pilot is planned to launch in the second half of 2027, with participants including merchants and payment service providers.
GateNews2h ago
