According to Golden Finance, on May 28 local time, the minutes of the Federal Open Market Committee (FOMC) meeting released by the Federal Reserve from May 6 to 7 were like a huge rock thrown into a calm lake, causing ripples in the financial market. Us crypto mining stocks closed sharply lower. However, surprisingly, the overall crypto market still maintained relative resilience and did not fall along with mining stocks.
The minutes of the meeting clearly pointed out, “If inflation remains high and economic growth and employment prospects weaken, the committee may face difficult choices.” After its meeting in early May, the Federal Reserve decided to keep interest rates unchanged at 4.25% to 4.50%. The minutes revealed that the underlying reason was that “the uncertainty of the economic outlook has significantly increased, and the risks of rising unemployment and intensifying inflation have both risen.”
As can be seen from the data of Google Finance, at the close of trading on May 28th, the share price of Riot Platforms (RIOT) plunged by 8.32%, Clean Spark (CLSK) dropped by 7.61%, and Mara Holdings closed sharply down by 9.61%. During the same period, the share price of the cryptocurrency exchange Coinbase (COIN) also dropped by 4.55%, while Michael Saylor’s Bitcoin investment firm MicroStrategy (MSTR) continued its five-day decline as a class-action lawsuit accused company officials of not truthfully disclosing the nature of Bitcoin investment. It dropped by another 2.14% on that day. On that day, the S&P 500 index also declined by 0.56%.
In fact, before this, tensions had already emerged between US President Donald Trump and the Federal Reserve. On April 17th, Trump publicly criticized Federal Reserve Chair Jerome Powell for not cutting interest rates quickly enough. Trump stated straightforwardly, “The sooner Powell’s term ends, the better!”
Despite the setbacks in mining stocks, the cryptocurrency market performed relatively stably during the same period. As of the time of publication, Bitcoin has dropped by 0.90% in the past 24 hours, trading at $107,942. The cumulative decline over the past week was 2.06%. In terms of market sentiment, the crypto Fear and Greed index rose by 3 points to 74, further entering the “greed” zone.
The next interest rate decision of the Federal Reserve is scheduled for June 18th. According to data from the CME FedWatch tool, as many as 97.8% of market participants expect interest rates to remain unchanged.
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