Crypto prices slipped this week as the Fed’s minutes revealed a hawkish outlook due to increasing inflation concerns. Bitcoin ( BTC ) and the broader cryptocurrency market buckled on Jan. 9, extending a multi-day downturn with the total digital asset sector down 4% to $3.37 trillion in 24 hours. A QCP Capital researcher wrote on Telegram that macro headwinds weighed on crypto prices after minutes from a Federal Reserve meeting shared late on Wednesday, Jan. 8. Fed governor Christopher J. Waller said the central bank would stagger any further rate cuts to curtail rising inflation risks. The Fed indicated that they will slow down the pace of rate cuts given that the risks of inflation have increased. Yesterday’s ADP employment survey also added to macro uncertainty, showing a slowdown in both private sector hiring and wage gains. This heavily contrasted with Tuesday’s JOLTS jobs openings which painted a stronger labour market. QCP Capital on crypto downslide You might also like: Mark Cuban chooses Bitcoin over Gold as economic hedge After a rebound to $95,200, Bitcoin fell below its key support level of $92,500. QCP noted that BTC could consolidate between $92,000 and $95,000 until the next rally. It could also visit the $90,000 level if $92,000 is breached, the trading desk said. 24-hour BTC price chart – Jan. 9 | Source: crypto.news Bitcoin could also face selling pressure from the U.S. government, as the Department of Justice reportedly approved $6.5 billion of seized Silk Road BTC for sale. The DOJ’s decision came shortly before the inauguration of President Donald Trump. Some crypto advocates speculated on the timing of the DOJ’s announcement due to Trump’s promises to halt all government BTC sales and establish a national reserve. Yet, the impact of such a sale may be short-term due to demand from institutional giants like MicroStrategy and spot BTC exchange-traded funds on Wall Street. Trillion-dollar wealth manager Fidelity also expects more countries, companies, and governments to buy Bitcoin in 2025, which may boost market prices. Read more: Markets 3 reasons why Bitcoin price may surge to $123k in January
