Bitcoin News Today: Bitcoin Plummets 1.11% as Fed Holds Rates Amid Inflation Concerns

Bitcoin experienced its largest hourly correction in two weeks, with a 1.11% drawdown as traders reacted to the Federal Reserve’s decision to maintain the target interest rate at 4.25%–4.50% [1]. At the time of press, Bitcoin traded at $116,320.13, having briefly dipped below the $116,000 level [1]. This sharp decline marked the second-largest single-hour correction since July 14, when BTC similarly fell 1.14% [1].

Major cryptocurrencies followed suit, with Ethereum falling 1.74% to $3,712.36, Solana declining 1.90% to $173.51, XRP dropping 2.52% to $3.04, and BNB retreating 1.46% to $775.27 [1]. The sell-off coincided with comments from Fed Chair Jerome Powell, who emphasized the slow pass-through of tariffs to inflation and reaffirmed the Fed’s commitment to its dual mandate [1]. Powell also dismissed speculation about a rate cut in September, contradicting public statements from President Donald Trump [1].

The Fed’s revised language in its post-meeting statement—changing from “uncertainty about the outlook has diminished” to “remains elevated”—reflected ongoing concerns about economic stability [1]. Bitfinex analysts noted that while second-quarter GDP rebounded to 3% annualized from a 0.5% contraction in Q1, the improvement was largely driven by reduced imports rather than strong domestic demand [1]. Final sales growth was modest at 1.2%, and core PCE inflation eased to 2.5% quarter-over-quarter [1].

These mixed signals left the Fed in a cautious position, with Bitfinex analysts stating that policymakers are likely to hold steady amid lingering inflationary risks [1]. The analysts warned that continued focus on sticky inflation or weak GDP growth could lead to further downside for Bitcoin, potentially testing $114,000 [1].

Market conditions remain cautious, with traders scaling back expectations for a rate cut in October [1]. Bitfinex emphasized that in the post-FOMC period, market participants should monitor order-flow patterns, volatility skew shifts, and funding-rate dynamics to gauge potential direction [1].

At 8:38 pm UTC on July 30, 2025, Bitcoin was ranked 1 by market cap, with a price of $116,373.65, down 0.92% in the past 24 hours. The cryptocurrency’s market capitalization stood at $2.32 trillion, with a 24-hour trading volume of $68.44 billion [1]. The total crypto market was valued at $3.8 trillion, with a 24-hour volume of $167.12 billion [1].

Source: [1] Bitcoin whipsaws below $116k amid largest hourly correction in two weeks; risks of further pullback to $114k (https://cryptoslate.com/bitcoin-whipsaws-below-116k-amid-largest-hourly-correction-in-two-weeks-risks-of-further-pullback-to-114k/)