Bitcoin gained slightly on the release of the Federal Reserve’s minutes from its November meeting, the captured discussion suggesting that the central bank may make smaller interest rate increases going forward.
The stock market also rose as traders absorbed the news.
The biggest cryptocurrency by market cap was trading for $16,498 at the time of writing, according to CoinGecko—a 2.6% increase over 24 hours.
Ethereum’s value also increased: The second largest digital asset, Ethereum, traded for $1,169, up 3.3% in the last day.
The rest of market also surged, including Elon Musk’s favorite ninth cryptocurrency, Dogecoin. It was trading at $0.08 and was up 4.8% within 24 hours.
Typically, Bitcoin—and the wider crypto market—has followed U.S. equities this year. Because digital assets are considered more risky assets by traders, this is why it has been so popular.
Ryan Scott, Trader Decrypt The uptick was anticipated. “This seems to be in line with market expectations. For a brief moment, short-term traders aggressively supported the release driving both equity index futures and crypto.” he said.
The Federal Reserve raising interest rates to bring down inflation, investors are eager to shift risk and put their money into safe-havens like U.S. dollars.
While the dollar has soared in value this year, it experienced losses against the yen and euro following the release of today’s minutes.
According to the meeting minutes, there was a light at end of the tunnel. “A substantial majority of participants judged that a slowing in the pace of increase would likely soon be appropriate,” Wednesday’s minutes said.