Fed Officials Weigh Rate Hikes Amid Sticky Inflation; Bitcoin Slumps to $66,000

The Federal Reserve's latest meeting minutes revealed an unexpectedly hawkish shift, with several officials openly discussing the possibility of further rate hikes if inflation remains stubbornly elevated. This escalation in rhetoric triggered a sharp sell-off in the cryptocurrency market, pushing Bitcoin (BTC) down to the $66,000 level shortly after the release. While the minutes noted some internal division, the prevailing consensus remains committed to a restrictive policy, fueling a rally in the US Dollar Index (DXY) and Treasury yields. The market reaction underscores growing concerns that the Fed may keep rates higher for longer to combat persistent price pressures. Investors are now recalibrating their expectations, as the prospect of near-term rate cuts fades in light of the central bank's firm stance. Consequently, high-risk assets remain under significant pressure as global liquidity conditions tighten.