Bitcoin Slips Below $75,000 as Fed Cites Middle East Risks in FOMC Minutes

Bitcoin (BTC) extended a two-day decline on Wednesday, slipping below the $75,000 threshold after the Federal Open Market Committee (FOMC) released minutes detailing its decision to maintain the federal funds rate between 3.5% and 3.75%. While the rate hold was largely anticipated by markets, the minutes revealed the Fed's concerns regarding inflation and escalating tensions in the Middle East, specifically involving Iran. The committee emphasized the need for "optionality" to manage risks to its dual mandate of maximum employment and a 2% inflation target. This cautious tone contributed to a "sell the news" reaction among traders, leaving the digital asset fragile during Chairman Jerome Powell's subsequent press conference. From a technical perspective, BTC hit an intra-day low of $74,937, falling below its 20-day simple moving average of $75,664. Analysts noted that the failure to maintain support in the $75,500 to $76,500 range suggests a potential loss of bullish momentum, which could open the path for the asset to test the lower boundaries of its four-month channel. On-chain data from Glassnode indicated a rise in bearish leverage and profit-taking by short-term holders, with BTC struggling to overcome its "True Market Mean" of $79,000. Despite the immediate volatility, institutional inflows into spot BTC ETFs and increased CME open interest have reportedly established a dense accumulation cluster between $65,000 and $70,000, providing a potential floor for the asset.