Bitcoin (BTC) price action turned bullish on March. 19 as markets grew anxious for the release of the Federal Open Market Committee (FOMC) minutes

Bitcoin (BTC) price action turned bullish on March. 19 as markets grew anxious for the release of the Federal Open Market Committee (FOMC) minutes

The Federal Open Market Committee (FOMC) minutes, released on March. 19, showed that the central bank will reduce the monthly redemption cap on Treasury securities from $25 billion to $5 billion.

Generally, traders keep a close eye on FOMC minutes, along with Powell’s comments, to obtain direct insights into the Fed’s take on US economic health, along with their plans for monetary policy and interest rates.

In the presser, Powell confirmed that the Fed intends to leave interest rates unchanged, in its target range between 4.25% to 4.5%, where they have been since December 2024.

Although the Fed downgraded its outlook for economic growth and emphasized that tamping inflation remains a sticking point, the Fed’s statements largely aligned with market participants’ expectations.

Crypto and equities traders have also been forecasting the reduction of the Fed’s policy of quantitative tightening (QT), and the FOMC minutes confirmed that the central bank will reduce “the monthly redemption cap on Treasury securities from $25 billion to $5 billion.”

Changes to FOMC statement (in red). Source: FederalReserve.govRelated: Bitcoin price volatility ramps up around FOMC days—Will this time be different?

In response to Fed statements, Bitcoin price added to its daily gains, rallying to an intraday high at $85,950 at the time of writing.

The DOW also added 400 points, while the S&P 500 index gained 77. Powell and Fed policymakers’ verbal commitment to two additional rate cuts in 2025 also line up with crypto traders’ expectations and could further buoy the current recovery in Bitcoin price.