Catenaa, Thursday, June 05, 2025- Bitcoin and other major crypto dipped after the Federal Reserve reaffirmed its hawkish stance in minutes from its May policy meeting, but analysts said the broader rally is likely to resume.
The minutes from the May 6-7 Federal Open Market Committee meeting, released Wednesday, reflected concerns about persistent inflation and economic uncertainty. Fed officials cited “difficult tradeoffs” and emphasized caution until the full impact of recent policy changes becomes clearer.
Bitcoin briefly slipped below $107,800 following the release but rebounded to $108,500 on Thursday. Ethereum gained ground, closing at $2,711, while altcoins saw mixed results — with XRP and Solana falling and Dogecoin helping to lift the broader GMCI 30 Index.
Despite the pullback, analysts at BRN said institutional demand for Bitcoin remains robust. U.S. spot Bitcoin ETFs have seen 10 straight days of inflows, led by BlackRock. Companies including Trump Media, GameStop and Strategy disclosed significant Bitcoin acquisitions this week, reinforcing corporate interest in crypto treasury holdings.
BRN analysts noted Bitcoin continues to serve as a long-term hedge, and that the rally should continue once profit-taking slows. Blockchain analytics firm Glassnode reported a rise in profit realization, though current levels remain well below past market tops.
Markets are now awaiting the Personal Consumption Expenditures report due Friday. CoinPanel’s Kirill Kretov said a soft inflation reading could revive hopes for rate cuts, while stronger data might prompt renewed selling across crypto markets.
