Bitcoin slips after Fed minutes flag potential future interest rate hikes

Investing.com -- Bitcoin dropped on Thursday after minutes from the Federal Reserve's last meeting suggested that further interest rate increases may be needed in the future, weighing on risk sentiment.

At 06:53 ET (10:53 GMT), the most popular cryptocurrency had fallen by 2.13% to $28,540. It had earlier slipped below $28,500, but recovered some of the losses to remain above the threshold.

Elsewhere, Ether dipped below the $1,800 mark, while smaller altcoins like Dogecoin and Solana also decreased.

The record from the Fed's July gathering showed that policymakers were divided over whether future borrowing cost increases were required to tamp down inflation. Even still, the prospect of more rate hikes by the Fed has lifted yields on United States 10-Year Treasuries to their highest in 10 months, placing pressure on riskier assets like digital tokens and equities.

Policymakers are widely tipped to back away from additional rate increases at the Fed's upcoming meeting in September. According to Investing.com's Fed Rate Monitor Tool, there is an 88% chance that the U.S. central bank keeps the benchmark fed funds rate steady at a range of 5.25% to 5.50%.

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