WASHINGTON (dpa-AFX) - Sentiment in cryptocurrency markets weakened following revelations of a hawkish tilt in the FOMC's deliberations. Outflows from U.S.-listed Bitcoin and Ethereum Spot ETF products added to the negative sentiment. Overall cryptocurrency market capitalization declined more than a percent in the past 24 hours.
Minutes of the FOMC held on January 27-28 revealed discussions about potential rate hikes to combat a possible surge in inflation. Though the Fed actually held rates steady and two members dissented to recommend a rate cut, markets have been surprised at the support for a possible interest rate hike in the future.
According to the minutes, several participants indicated that they would have supported a two-sided description of the Committee's future interest rate decisions. The stance reflected the possibility that upward adjustments to the target range for the federal funds rate could be appropriate if inflation remains at above-target levels. Participants also observed that overall inflation had eased significantly from its highs in 2022 but remained somewhat elevated relative to the Committee's 2 percent longer-run goal.
With the Fed minutes revealing a hawkish undertone, hopes of an immediate easing in the Federal Reserve's monetary policy framework ebbed. According to the CME FedWatch tool, the likelihood of the Fed's current target rate of 3.50-3.75 percent decreasing to 3.25-3.5 percent in the March FOMC has declined to 5.9 percent from 6.4 percent a day ago.
Overall cryptocurrency market capitalization is currently at $2.3 trillion, shedding 1.2 percent in the past 24 hours. The 24-hour trading volume has also decreased 1.7 percent overnight to $82 billion.
The CMC Fear and Greed Index, a proprietary tool developed by CoinMarketCap to measure the prevailing sentiment in the cryptocurrency market shows a reading of 11 denoting extreme fear. It was 12 a day ago implying a slight increase in bearish pressures.
Bitcoin, the largest cryptocurrency is trading 0.67 percent lower at $66,891.31. The current price is around 47 percent below the all-time high of $126,198.07 recorded on October 7, 2025. The original cryptocurrency has lost 1.4 percent in the past week and is saddled with year-to-date losses of 23.6 percent. The 24-hour trading ranged between $68,312.94 and $65,845.90.
Bitcoin Spot ETF products in the U.S. witnessed net outflows rising to $133 million on Wednesday from $105 million a day earlier.
Bitcoin is continuing in the 13th position in the global ranking of all assets as per market capitalization published by companiesmarketcap.com.
Ethereum has declined more than 1 percent overnight as it slipped to $1,62.25. The leading alternate coin is trading 60 percent below the all-time-high of $4,953.73 recorded on August 25, 2025. The 24-hour trading ranged between $2,009.25 and $1,923.81.
Ethereum Spot ETF products in the U.S. witnessed net outflows of $42 million on Wednesday versus net inflows of $49 million on Tuesday.
Meanwhile, Ethereum has fallen six notches to the 80th position in the global ranking of all assets as per market capitalization published by companiesmarketcap.com.
4th ranked XRP dropped 3.8 percent overnight to trade at $1.41, around 63 percent below the all-time high of $3.84 touched on January 4, 2018.
5th ranked BNB lost 1.5 percent overnight resulting in price decreasing to $606.23. BNB is trading 56 percent below the all-time high of $1,370.55 touched on October 13, 2025.
The price of 7th ranked Solana decreased 2.1 percent overnight to $81.75. SOL's current price is around 72 percent below its all-time-high of $294.33 recorded on January 19, 2025.
TRON ranked 8th overall edged up 0.14 percent overnight and is currently changing hands at $0.2808. The trading price is 36 percent below the cryptocurrency's all-time high of $0.4407 recorded on December 4, 2024.
9th ranked Dogecoin dropped 2.2 percent overnight and is currently trading at $0.0976. DOGE is trading 87 percent below the previous peak of $0.7376 recorded on May 8, 2021.
10th ranked Bitcoin Cash (BCH) erased 1.6 percent and is currently trading at $549.69 which is 87 percent below the cryptocurrency's record high of $4,355.62 touched on December 20, 2017.
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