- 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
SEC Commissioner: Will Carefully Study "Innovation Exemption" for Tokenized Securities, Focus on Key Issues Such as Information Disclosure
U.S. Securities and Exchange Commission Commissioner Hester M. Peirce announced the launch of an "Innovation Safe Harbor" program for tokenized securities, which will allow limited trading and experimentation within a restricted scope. The program will take a more cautious approach, explore different tokenization models, and consider investor protection mechanisms. The SEC is also evaluating related disclosure and regulatory issues.
GateNews21m ago
Fed March rate cut 25 basis points probability at 1.9%, probability of maintaining interest rates unchanged reaches 98.1%
Gate News: On March 15, according to CME "FedWatch" data, the Federal Reserve will announce its interest rate decision next Thursday at 02:00. The data shows that the probability of the Federal Reserve cutting rates by 25 basis points in March is 1.9%, while the probability of maintaining rates unchanged is 98.1%.
Looking ahead to April, the probability of the Federal Reserve cumulatively cutting rates by 50 basis points is 0.1%, the probability of cumulatively cutting rates by 25 basis points is 5.8%, and the probability of maintaining rates unchanged is 94.1%.
GateNews54m ago
Uncertainty in stablecoin regulation causes traditional banks to delay infrastructure investments, while crypto companies offering 4%-5% returns may accelerate capital migration.
Unclear stablecoin regulations create operational difficulties for traditional banks, while crypto companies continue to develop in gray areas. Banks are hesitant to make large-scale investments in stablecoin infrastructure due to advice from legal counsel, resulting in limited deployment. While large-scale deposit outflows have not yet occurred, competitive pressure is increasing.
GateNews1h ago
US Senate Bans CBDC: What Happens to Its Wholesale Version?
The US Senate’s newly passed Housing Act does not clearly distinguish between retail and wholesale versions of a CBDC.
The definition of the act, though, implies that the CBDC prohibition applies only to the retail version, which is designed to be widely available to the public.
The US Senate
Blockzeit5h ago
