- The Federal Reserve’s latest minutes reveal a rare split decision, with Governors Christopher Waller and Michelle Bowman dissenting from the majority by advocating for a 25 basis-point rate cut.
- Despite the Fed’s cautious stance, Bitcoin and Ethereum shrugged off an initial dip, with Ethereum heavily outperforming BTC and regaining a positive trajectory.
- According to a FalconX analyst, the crypto market’s bullishness is supported by strong buy-side demand on minor pullbacks, suggesting that investors are treating dips as entry points rather than a sign of weakness.
Bitcoin (BTC) regained some territory today, trading at US$114,000 (AU$176,400) ahead of Jerome Powell’s Jackson Hole speech. Ethereum (ETH) heavily outpaced BTC with a 6% increase, currently priced at US$4,340 (AU$6,680)
The document showed that Christopher Waller and Michelle Bowman backed a 25 basis-point cut, arguing inflation was near the 2% target once tariff effects were excluded. Their push failed to win support, marking the first dual dissent from Federal Reserve governors since 1993.
The last solo objection came in September 2024, when Bowman sought a smaller cut than the half-point the committee delivered.
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Bowman justified her stance by pointing to inflation “moving considerably closer to the committee’s objective, after excluding temporary effects of tariffs,” alongside slowing growth and signs of weaker labour-market momentum. She also argued that acting early would hedge against further weakness and potential job losses.
Rate cut expectations weakened after the August 12 Consumer Price Index showed 2.7% annual inflation, unchanged from June but above the Fed’s 2% target. According to CME Group’s FedWatch tool, odds of a September cut fell from over 94% to 82% in less than a week.
Bitcoin Remains Bullish
According to FalconX’s Research Head, David Lawant, Bitcoin remains firmly bullish due to one particular behaviour.
In an analysis posted Wednesday, Lawant highlighted recurring behaviour in the order book whenever Bitcoin retreats slightly from peak levels. He described the order book as “flipping”; in other words, sell orders are quickly vanishing while buy orders are surging to dominate the market.
The dynamic suggests sellers are unwilling to press declines, while buyers, including institutions and capital-heavy funds, step in aggressively on minor pullbacks. That pattern implies that dips are being treated as entry points rather than warnings of broader weakness.
The bottom line is that the lack of sustained selling pressure and repeated bid-side dominance is a sign that Bitcoin’s foundation remains strong despite trading below recent records.
Related: SEC Delays Decisions on Bitcoin, Ethereum, Solana, and XRP ETFs Until October
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