Bitcoin slipped on Thursday, extending its recent pullback after the Federal Reserve’s January meeting minutes delivered a more hawkish message, adding to uncertainty around the future path of U.S. interest rates.
Digital assets were also weighed down by broader risk aversion amid escalating geopolitical tensions between the United States and Iran. In contrast, gold outperformed as investors sought traditional safe-haven assets.
As of 01:06 ET, Bitcoin (COIN:BTCUSD) was down 1.3% at $66,963.8.
Cryptocurrencies also underperformed a rally in global technology stocks, despite their historical tendency to move in tandem with the sector.
Bitcoin pressured by rate uncertainty
The leading cryptocurrency continued to face headwinds from rising doubts about U.S. monetary policy, with the Fed minutes offering little reassurance to markets.
The record from January’s meeting showed policymakers increasingly split over the longer-term trajectory for rates and inflation. Notably, “several” officials suggested that further rate hikes could be warranted if inflation remains persistent.
Fed participants were also described as uncertain about the economic impact of artificial intelligence, with differing views on whether the technology will ultimately support or hinder growth.
Crypto markets reacted negatively to the renewed discussion of potential rate increases, as higher borrowing costs typically weigh on speculative assets such as Bitcoin. Following the release of the minutes, traders appeared to shift toward the U.S. dollar.
Goldman Sachs CEO says he owns very little Bitcoin
Goldman Sachs (NYSE:GS) Chief Executive David Solomon said he personally holds very little Bitcoin, though he is monitoring the asset closely and is interested in its potential influence on financial markets.
Goldman has generally taken a cautious stance toward cryptocurrencies, but Solomon has previously signaled openness to the space.
Speaking at the World Liberty Forum on Wednesday, Solomon noted that the bank could explore deeper involvement in crypto, particularly if regulatory clarity improves under the Donald Trump administration.
Altcoins remain subdued as investors await data
The broader crypto market traded in a narrow range, lacking fresh positive catalysts. Like Bitcoin, most alternative tokens have suffered steep losses in recent months as overall sentiment toward digital assets has weakened.
Attention is now turning to upcoming U.S. economic releases for further guidance on interest rates. Key among them is the Personal Consumption Expenditures (PCE) price index — the Fed’s preferred inflation measure — scheduled for release on Friday.
Ether, the world’s second-largest cryptocurrency, declined 1.1% to $1,980.99, while XRP dropped nearly 4% to $1.4228.
Solana, Cardano and BNB posted losses ranging between 0.4% and 3%.
Among memecoins, Dogecoin fell 2.5%, and $TRUMP slid 1.7%.