"Will Bitcoin Rebound After the FOMC Minutes Shock?... Hopes Rise for a Rally on Corporate Demand"
Summary
- After the recent release of the FOMC minutes, it was reported that major virtual assets such as Bitcoin experienced a temporary correction, but the possibility of a rebound has emerged due to institutional demand.
- The 10 consecutive trading days of net inflows into the U.S. Bitcoin Spot ETF, along with BTC purchase announcements from Trump Media, GameStop, and others, are said to be supporting investor sentiment.
- It was reported that, depending on the results of the U.S. PCE price index scheduled for release on the 30th, expectations for the Fed's rate policy and market responses could change sensitively.
After the recent release of the May minutes from the U.S. Federal Open Market Committee (FOMC), prices of virtual assets (cryptocurrencies) including Bitcoin (BTC) experienced a temporary adjustment, but analysis suggests that expectations for a resumed upward trend are growing thanks to institutional demand.
On the 29th (local time), the digital asset news media The Block reported, "After the release of the FOMC May minutes in the United States, major crypto assets including Bitcoin underwent a short-term correction, but the continued demand from institutions and increased corporate buying could lead to a rebound."
According to these FOMC minutes, members of the Federal Reserve reaffirmed the need for a cautious policy approach due to persistent inflation and the possibility of an economic downturn. Bitcoin's price fell below $107,800 immediately after the minutes' release but rebounded to $108,500 thereafter. Ethereum closed higher on the 28th and then rose to $2,711, while Dogecoin rose, but XRP and Solana fell.
The BRN Research Team diagnosed, "Institutional demand remains strong, and the U.S. Bitcoin Spot Exchange-Traded Fund (ETF) has recorded net inflows for 10 consecutive trading days." It added, "Following Trump Media's announcement of plans to form a private Bitcoin treasury worth $2.5 billion, GameStop and Strategy (formerly MicroStrategy) also announced BTC purchases this week." The analysis is that corporate demand could support buying pressure.
On-chain analytics firm Glassnode also stated, "While profit-taking has increased compared to previous major highs, it is still not at extreme levels," and diagnosed, "This is far from the widespread profit-taking seen at past bull market peaks."
The media added, "The market is keeping a close eye on the U.S. Personal Consumption Expenditures (PCE) price index scheduled for release on the 30th," and, "If the data comes out soft, expectations for a Fed rate cut may rise, but if it only slightly exceeds expectations, the market could overreact."
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
