Following the release of the Federal Open Market Committee (FOMC) minutes, crypto markets remained relatively stable, contrasting with a downward trend in U.S. stocks driven by concerns over inflation.

Despite positive reports on the consumer price index (CPI) for April, Federal Reserve officials expressed reservations about the progress in combating inflation, indicating reluctance to cut interest rates.

According to the latest FOMC minutes, inflation rates have remained significantly above the Fed's 2% target, prompting discussions about potential rate hikes. However, Chair Jerome Powell hinted against tightening economic policies, emphasizing the need for consecutive months of positive inflation data before considering a dovish approach.

Following the decision to maintain a short-term lending rate of 5.25%-5.5%, U.S. stocks experienced a slight decline, with the S&P 500 trading approximately 0.27% lower.

Nigel Green, CEO of deVere Group, anticipates that the Fed's stance will have less impact on investor sentiment moving forward. Green emphasized expectations for the continuation of the bull run in the markets, citing factors such as a robust earnings season, recovery in China and Europe, and potential rate cuts in the U.S. if the economy achieves a soft landing.

Bitcoin, often hailed as a hedge against inflation, has seen significant growth year-to-date, up approximately 65%. The introduction of spot Bitcoin ETFs and the anticipation of a supply shock following the halving have contributed to increased demand for the cryptocurrency.

In comparison, the S&P 500 has experienced a more modest growth of 11.9% in the current bull cycle for U.S. equities. Looking back over the past five years, Bitcoin has outperformed the S&P 500 by a significant margin, with a growth of 781.3% compared to 87.7% for the S&P 500.

Despite its initial detachment from the U.S. financial market, Bitcoin has solidified its status as an inflation hedge over the years, attracting interest from major players like MicroStrategy and BlackRock.