Bitcoin News Today: Fed Holds 4.25%-4.50% Rate Range Amid Trump Pressure, Bitcoin Slumps 5.5% as Crypto Markets Volatile

Generated by AI AgentCoin World
Sunday, Jul 27, 2025 1:42 am ET1min read
BTC
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Aime RobotAime Summary

- U.S. Fed maintains 4.25%-4.50% rate range amid Trump pressure, prioritizing 2.7% inflation control over growth concerns.

- Bitcoin drops 5.5% to $116,200 as high rates curb crypto liquidity, with altcoins showing heightened volatility and liquidations.

- Markets anticipate potential September rate cut (62% probability) to boost crypto demand, though July inaction reflects data-dependent policy.

- Powell's post-meeting statements and economic indicators will shape future decisions, balancing inflation risks against growth uncertainties.

The U.S. Federal Reserve is expected to maintain its benchmark interest rate within the 4.25%-4.50% range during its July 29–30 meeting, defying pressure from President Donald Trump and signaling a cautious approach to monetary policy amid mixed economic signals. Futures market data from the CME Group’s FedWatch tool indicates near-zero probability of a rate cut at the upcoming meeting, aligning with broader market expectations of a “status quo” stance until later in 2025 [1][2]. The decision underscores the Fed’s prioritization of inflation control, with current annual inflation at 2.7%, despite rising concerns over economic growth and trade tensions [3].

The outcome has drawn attention from cryptocurrency markets, which remain sensitive to shifts in monetary policy. Analysts note that prolonged high rates typically curb liquidity and risk appetite, factors that could dampen speculative trading in digital assets.

Bitcoin
, which recently reached an intraday high of $123,000 on July 14, fell to $116,200 by late July, reflecting investor caution ahead of the Fed’s decision [4]. Altcoins have also experienced heightened volatility, with increased liquidations reported as traders adjust positions in anticipation of policy clarity [5]. Meanwhile, Mitrade analysts highlight that a potential rate cut—expected as early as September—could reinvigorate crypto demand by lowering borrowing costs and boosting market liquidity [6].

Markets are closely monitoring Fed Chair Jerome Powell’s post-meeting statements for cues on future monetary policy. AInvest reports a 62% probability of a rate reduction in September, contingent on inflation trends and economic data [3]. Polymarket traders, however, have assigned a 96.3% probability to the July meeting holding rates steady, reflecting widespread skepticism about an immediate pivot [7]. This disparity between forecasts and market pricing highlights the uncertainty surrounding the Fed’s next move. Trump’s vocal advocacy for cuts has added political noise to the discussion, though central bankers have emphasized data dependency in their decision-making framework [2].

The decision to maintain rates underscores the Fed’s balancing act between inflationary risks and growth concerns. While 2.7% inflation suggests progress toward the 2% target, indicators such as wage growth and housing costs remain elevated. Investors are advised to prepare for extended volatility in both traditional and crypto markets until more clarity emerges on the Fed’s timeline for easing policy [3][6].

Sources:

[1] [US Fed Poised to Hold Off on Rate Cuts](https://finance.yahoo.com/news/us-fed-poised-hold-off-032010188.html)

[2] [Fed Likely to Hold Interest Rates Steady](https://www.cnbc.com/2025/07/25/fed-likely-to-hold-interest-rates-steady-despite-trumps-pressure.html)

[3] [Fed Holds Rates Amid 2.7% Inflation](https://www.ainvest.com/news/fed-holds-rates-2-7-inflation-markets-eye-september-cut-62-probability-2507/)

[4] [Crypto Altcoins Lead Slide](https://fortune.com/crypto/2025/07/25/bitcoin-price-today-fed-rates-trump-powell/)

[5] [Market Bets Hold Firm](https://www.techi.com/polymarket-96-3-odds-no-fed-rate-cut-july-2025-fomc/)

[6] [Could Bitcoin Price Rally End?](https://www.mitrade.com/insights/news/live-news/article-3-981656-20250724)

[7] [Fed Rate Cut Signals](https://coinstats.app/news/889cbf3827d90dc91140753035d27ef29ded2e90d1262990f7daa26ff27841e1_Fed-Rate-Cut-Signals%3A-Trump%E2%80%99s-Insight-Fuels-Market-Optimism/)