Bitcoin News Today: Bitcoin’s Fate May Hinge on Fed’s Rate Cut Divide

Bitcoin and Ethereum experienced a short-term bounce following the release of the U.S. Federal Reserve’s July Federal Open Market Committee (FOMC) meeting minutes, which revealed internal divisions among policymakers. The minutes indicated that two dissenters, Federal Reserve Governors Christopher Waller and Michelle Bowman, advocated for a 25-basis-point rate cut at the July meeting, citing inflation approaching the Fed’s 2% target and a slowing labor market [6]. Following the publication, Bitcoin traded at $114,253, up 0.6% in the hour after the minutes were released, while Ethereum rose 1.2% to $4,347 [6].

The debate over whether to cut rates has intensified as inflationary pressures persist. The Bureau of Labor Statistics reported July inflation at 2.7% annually, with core inflation—excluding food and energy—remaining at over 3% [6]. Waller and Bowman argued that a gradual reduction in the federal funds rate could preemptively address potential economic weakening and labor market risks. This aligns with U.S. President Donald Trump’s public pressure on Fed Chair Jerome Powell to implement more aggressive rate cuts, despite the Fed’s traditional independence from political influence [6].

The release of the minutes came ahead of Powell’s speech at the Jackson Hole symposium on August 22, where he is expected to provide further insight into the Fed’s stance on rate policy [4]. Markets are currently pricing in an 80–95% probability of a 25-basis-point cut at the September FOMC meeting, with the possibility of further cuts in October still under consideration [4]. The minutes’ tone and Powell’s remarks will likely influence investor sentiment in the coming weeks, particularly for assets like Bitcoin, which tend to benefit from accommodative monetary policy [6].

Bitcoin’s price has been volatile in recent weeks, dipping below $113,000 amid broader macroeconomic uncertainty and profit-taking by traders. Liquidation data from the past 24 hours showed $530.79 million in forced selling, including $124 million in Bitcoin and $184 million in Ethereum positions [3]. Despite these short-term losses, analysts remain optimistic about Bitcoin’s longer-term trajectory. Bernstein analysts projected that Bitcoin could reach between $150,000 and $200,000 within 12 to 18 months, emphasizing regulatory reforms and the U.S. government’s push to position the country as a global crypto hub as key drivers [2].

Ethereum and other altcoins have also shown resilience, with Ethereum up more than 150% from April lows and Solana rising 70% during the same period [2]. Institutional interest in crypto has grown, with corporations increasingly allocating digital assets to their balance sheets, mimicking the strategy employed by MicroStrategy. This trend has contributed to broader market confidence, even as macroeconomic headwinds, such as inflation and geopolitical tensions, remain a concern [3].

The market remains closely watching for any dovish signals from the Fed, as lower interest rates could stimulate capital flows into risk assets like Bitcoin. Analysts at QCP Capital highlighted the critical stakes in the Fed’s policy decisions, noting the need to balance inflationary control with labor market risks [4]. Whether the Fed decides to cut rates or maintain its current stance, the broader macroeconomic environment suggests an ongoing inflationary trend, with Bitcoin potentially serving as a hedge or store of value in either scenario [8].

Source: [1] Bitcoin analysts point to 'manipulation' as BTC price falls ... (https://cointelegraph.com/news/bitcoin-analysts-point-to-manipulation-as-btc-price-falls-to-17-day-low) [2] Bitcoin could reach $200,000 within 6 months during 'long ... (https://finance.yahoo.com/news/bitcoin-could-reach-200000-within-6-months-during-long-exhausting-crypto-bull-market-173358527.html) [3] Bitcoin sinks to $115000 after hitting its newest record, as ... (https://www.cnbc.com/2025/08/18/crypto-market-today.html) [4] FOMC Minutes: What Will the Fed Do? - Orbex (https://www.orbex.com/blog/en/2025/08/fomc-minutes-what-will-the-fed-do) [5] Fed's September Rate Cut Next? FOMC Minutes and ... (https://coingape.com/trending/feds-september-rate-cut-next-fomc-minutes-and-powell-speech-this-week-to-decide/) [6] Bitcoin, Ethereum Rise After Fed Minutes Shed Light on Rate ... (https://finance.yahoo.com/news/bitcoin-ethereum-rise-fed-minutes-200700323.html) [7] Crypto Today: Bitcoin, Ethereum, XRP rebound as Fed ... (https://www.fxstreet.com/cryptocurrencies/news/crypto-today-bitcoin-ethereum-xrp-rebound-as-fed-meeting-minutes-draw-market-focus-202508201108) [8] All roads lead to inflation: Fed cut or not, Bitcoin may stand ... (https://cointelegraph.com/news/all-roads-lead-to-inflation-fed-cut-or-not-bitcoin-may-stand-to-gain)