Bitcoin Surges 2.1% as Fed Minutes Hint at QT Pause

Bitcoin surged 2.1% over the past 24 hours, following the release of the Federal Reserve's (Fed) January meeting minutes. The minutes indicated that policymakers discussed the possibility of pausing or slowing the balance-sheet reduction program, known as quantitative tightening (QT), due to concerns about the debt ceiling.

The cryptocurrency's price climbed from $94,134 yesterday to $96,180 an hour after the minutes were released. The minutes showed that "participants indicated that, provided the economy remained near maximum employment, they would want to see further progress on inflation before making additional adjustments to the target range for the federal funds rate."

Officials maintained the Fed's benchmark policy rate between 4.25% and 4.5% at the January meeting. The minutes revealed that "many participants noted that the committee could hold the policy rate at a restrictive level if the economy remained strong and inflation remained elevated."

The Treasury Department has been employing extraordinary measures to extend its ability to pay federal government expenses since reaching the statutory debt limit in January.

The potential slowdown in QT could provide some relief to the cryptocurrency market, which has been under pressure due to the Fed's tightening monetary policy. However, it remains to be seen whether this will lead to a more significant rally in Bitcoin's price.

Market participants will continue to monitor the Fed's policy decisions and economic data releases for further clues about the direction of the cryptocurrency market. As always, investors should remain cautious and conduct thorough research before making any investment decisions.