"Historically, Fed taper has been a headwind for bitcoin," one fund manager said.
Bitcoin slipped below $50K and will likely consolidate this week, analysts say.
Analysts expect bitcoin to remain above its 200-day moving average.
Bitcoin and other cryptocurrencies are consolidating near recent highs.
This appears to be the first time the topic has come up in the seminal monthly FOMC meeting.
A year-over-year gain of 5.4% may reflect an economy that’s still suffering from supply shortages while keeping up with increasing demand.
The U.S. unemployment rate fell to 5.4%, a post-pandemic low, from 5.9% in June, according to the U.S. Labor Department's Bureau of Labor Statistics.
Bitcoin hits its highest level since mid May and has risen more than 15% over the past week.
Even while pressure mounts to taper its asset purchases, the central bank will continue its accommodative quantitative easing.
Policymakers should not be concerned, the researchers wrote: Only 0.02% of coronavirus-relief checks ended up in bitcoin.
The Federal Reserve chair said "the more direct route" would be to regulate stablecoins.
The report will address cryptocurrencies, stablecoins and CBDCs.
Financial markets from stocks to bonds to cryptocurrencies have been fixated on inflation readings as the economy reheats.
The central bank's monetary policy report to congress gave crypto a rare shoutout Friday.
The Labor Department also revised May's numbers up by 24,000.