Bitcoin extended its weekly decline to 7% following hawkish FOMC minutes, which cemented expectations that the Federal Reserve will not cut interest rates in March. The Federal Reserve also published research endorsing prediction markets, while Coinbase CEO Brian Armstrong expressed optimism about a positive outcome for the ongoing CLARITY Act negotiations.
Cryptocurrency markets faced renewed pressure this week from macroeconomic developments. Bitcoin fell to a low near $65,800 after the release of Federal Open Market Committee minutes on February 18.
The minutes were seen as mildly hawkish, further reducing expectations for a March rate cut. This decline in risk sentiment also dragged down major altcoins across the board.
Ethereum extended its weekly losses to 10%, while Solana dropped 11% and Ripple fell 15% from its February 15 level. Market focus now shifts to the upcoming Personal Consumption Expenditure inflation data.
In a separate development, the Federal Reserve voiced support for prediction markets. According to Federal Reserve research, platforms like Kalshi provide valuable real-time tracking of economic expectations.
The study noted these markets can be superior to traditional surveys. “Our study highlights the promise of prediction markets as a new benchmark for measuring expectations and informing monetary policy decisions,” the Fed stated.
Meanwhile, Coinbase CEO Brian Armstrong expressed confidence in the progress of crypto legislation. Armstrong stated that talks around the CLARITY Act are on a positive path.
“Market structure is making great progress, and I believe we’re going to reach a win-win-win outcome,” he said in a recent interview. The White House is hosting further meetings to broker a deal on stablecoin regulations.
