The minutes of the U.S. Federal Reserve were confirmed to be more hawkish than expected, increasing the burden on risk-asset markets such as bitcoin (BTC).

On May 20 local time, blockchain media outlet BeInCrypto said the minutes of the Fed's April 28 to 29 meeting heightened concerns that the policy rate could remain at a high level for longer.

The most watched part of the minutes was a shift in perceptions inside the Fed. Many policymakers indicated they should remove the existing easing bias altogether. They also judged that additional rate hikes could be needed if inflation does not ease easily. The content was far from the early-cut scenario the market had expected.

The Fed held its policy rate at 3.50 to 3.75 percent. Separately from the decision to keep rates unchanged, the meeting details revealed the deepest policy disagreement in recent years. There were 4 dissents at the meeting. That was the most since 1992.

The dissents also pointed in different directions. Stephen Miran (스티븐 미란) warned that policy could become "overly restrictive" as labour market risks increase and supported a 25 basis-point cut. By contrast, Beth Hammack (베스 해맥), Neil Kashkari (닐 카시카리) and Lorie Logan (로리 로건) opposed keeping language that hinted at the possibility of future easing. Differences over the rate path widened within the Fed, but the overall balance of the minutes leaned toward caution about tightening rather than easing.

Policymakers also pointed to factors that could reignite inflation. Rising energy prices, tariffs and geopolitical instability linked to conflict in the Middle East were cited as key inflation risks. These variables were read as factors that could disrupt the disinflation trend and delay the timing of rate cuts further.

In particular, the Fed warned that inflation expectations could become "unanchored" if price pressures remain high. It means that if markets and households start to think prices will keep rising, upward pressure on actual inflation could last longer. For a central bank, it is one of the scenarios it is most wary of.

In crypto markets, such signals are likely to act as a direct burden. As bitcoin is classified as a representative risk asset, investor sentiment is bound to weaken if the possibility of higher rates for longer grows. If expectations for rate cuts retreat, buying interest premised on expanding liquidity could also weaken.

The minutes reaffirmed that even if the Fed does not move rates immediately, it remains far from the easing shift the market expected. As a result, the bitcoin market is expected to react more sensitively to inflation trends, additional Fed remarks and whether inflation risk factors actually intensify.