Bitcoin News Today: Bitcoin Holds Steady Near $118,500 After Fed Rate Decision and Crypto Market Rebound

The U.S. Federal Reserve’s recent decision to maintain its benchmark interest rate within the 4.25%-4.50% range initially triggered a market reaction that saw approximately $200 million in crypto liquidations [1]. However, Bitcoin (BTC) quickly regained stability, bouncing back above the $117,000 level after a brief selloff. Over the following days, BTC consolidated and edged higher by 0.50%, retaking the $118,000 threshold and holding steady near $118,500 [2][3]. Despite the initial volatility, the market’s response to the Fed’s inaction suggested a growing sense of complacency among traders, with the broader market having already priced in the expectation of no immediate rate cuts [4].

The market’s reaction was also influenced by the release of the White House’s digital asset report, which failed to mention a strategic bitcoin reserve, triggering a brief pullback in BTC’s price to below $116,000 [3]. Nevertheless, the asset regained most of its losses and is currently trading around $118,500, with a market capitalization of $2.360 trillion and a dominance of 59.4% over other cryptocurrencies [3]. The total crypto market cap also saw a recovery, rising by $30 billion overnight to reach $3.970 trillion [3].

Altcoins also showed signs of recovery, with Ethereum (ETH) rising past $3,850 and Ripple (XRP) rebounding above $3.15 after similar daily gains [3]. Solana (SOL), Binance Coin (BNB), and Dogecoin (DOGE) also turned green, while Ethereum Name Service (ENA) emerged as the top performer, surging over 16% to $0.675 [3]. Smaller altcoins like SUI, LINK, and HBAR also posted notable gains, with increases of over 3% to 5.7% [3]. This broad-based rebound was partly attributed to renewed ETF inflows, which sparked increased interest in the crypto market [2].

Analysts observed that the market’s behavior reflected classic "late-cycle" dynamics, where investors tend to ignore positive macroeconomic news and remain cautious about potential policy shifts [6]. This was evident in Bitcoin’s rangebound movement, with traders advised to monitor key support levels. A break below $112,000 could signal a deeper correction and renewed downward pressure [7].

Looking ahead, the next FOMC meeting will be a key event for the market. In the immediate term, Bitcoin appears to be finding a temporary equilibrium around $119,000, offering a cautious yet stable backdrop for the broader crypto market [5][8]. While the current calm suggests a degree of stability, it could be short-lived if the Fed signals any meaningful policy shifts or if macroeconomic data introduces new uncertainties.

[1] Source: Fed Rate Decision Triggers $200M Crypto Liquidations as Bitcoin Eyes Recovery, CoinCentral, https://coincentral.com/fed-rate-decision-triggers-200m-crypto-liquidations-as-bitcoin-eyes-recovery/

[2] Source: Bitcoin holds steady as Fed holds interest rates, Powell, Mitrade, https://www.mitrade.com/insights/crypto-analysis/bitcoin/fxstreet-BTCUSD-202507311354

[3] Source: Bitcoin and Altcoins Bounce Back After Fed’s Interest Rate Decision: Market Watch, CoinMarketCap, https://coinmarketcap.com/community/articles/688b353023396a76e6026c39/

[4] Source: Bitcoin in limbo: Watch these BTC price levels ahead of FOMC, Cointelegraph, https://cointelegraph.com/news/bitcoin-limbo-watch-btc-price-levels-ahead-of-fomc

[5] Source: Market Watch: Bitcoin Steady at $119K as Altcoins Pull Back, XT.com, https://www.xt.com/en/blog/post/market-watch-bitcoin-steady-at-119k-as-altcoins-pull-back

[6] Source: Bitcoin Market Ignores Good News, Decrypt, https://decrypt.co/332851/bitcoin-market-ignores-good-news-textbook-late-cycle-behavior

[7] Source: Bitcoin Price Forecast: Will the BTC consolidation phase, FXStreet, https://www.fxstreet.com/cryptocurrencies/news/bitcoin-price-forecast-btc-extends-consolidation-as-fed-interest-rate-decision-looms-202507301139

[8] Source: Bitcoin Price Calms at $118K Ahead of FOMC Meeting, XT.com, https://www.xt.com/en/blog/post/bitcoin-price-calms-at-118k-ahead-of-fomc-meeting-bonk-dumps-hard-market-watch