Bitcoin News Today: Fed Holds Rate, Crypto Slumps as BTC Drops 1% Below $118.5K

Cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), XRP, and Dogecoin (DOGE) fell sharply following the Federal Reserve’s decision to hold its benchmark interest rate steady between 4.25% and 4.50% on Wednesday [1]. The lack of a rate hike, which had been expected by much of the market, led to a sell-off as traders recalibrated their expectations for monetary policy and macroeconomic conditions [2]. Bitcoin, which had been hovering near $120,000 earlier in the week, retreated below $118,500, reflecting growing uncertainty ahead of the FOMC meeting and the August 1 tariff deadline [3].

The decline was not isolated to Bitcoin. Ethereum dropped below $3,745, with a more than 2% intraday fall recorded as it moved to $3,725 [1]. Altcoins fared worse, with XRP and Solana (SOL) declining by roughly 13% in the past week, while Dogecoin fell nearly 18% in the same period [4]. Dogecoin’s price broke below the 20-day simple moving average, signaling bearish momentum and raising concerns about a potential drop to $0.19 [5].

IntoTheBlock data showed that large transactions involving Bitcoin and Ethereum dropped by 9.6% and 20.8%, respectively, while daily active addresses increased slightly by 2.5% and 12.7% [1]. Meanwhile, Coinglass reported that over 108,863 traders were liquidated in the past 24 hours, with total losses amounting to $216.32 million [1].

Analysts highlighted the significance of the Fed’s decision as a pivotal moment for the crypto market. Traders are now closely monitoring FOMC minutes and macroeconomic indicators for further clarity [1]. The consolidation in Bitcoin’s price range between $115,000 and $120,000 suggests a potential breakout could be imminent, either to the upside or downside [1]. A sustained move above $120,000 could see Bitcoin heading toward new all-time highs, while a breakdown below $115,000 may trigger deeper corrections.

The broader market impact was also notable. The total cryptocurrency market cap fell more than 5% to $3.92 trillion, with both Bitcoin and altcoins experiencing losses [7]. Ethereum’s perpetual futures volume even outpaced Bitcoin’s for the first time in recorded history, suggesting a potential rotation toward altcoins [1].

Market participants are now bracing for further turbulence as they await key data releases and policy updates. The coming weeks will be crucial in determining whether crypto assets can regain upward momentum or whether prolonged macroeconomic uncertainty will continue to weigh on prices [2].

Source: [1] Price predictions 7/30: BTC, ETH, XRP, BNB, SOL, DOGE ... https://cointelegraph.com/news/price-predictions-7-30-btc-eth-xrp-bnb-sol-doge-ada-hype-xlm-sui

[2] Bitcoin, Ethereum, XRP steady as traders brace for key US ... https://www.fxstreet.com/cryptocurrencies/news/crypto-today-bitcoin-ethereum-xrp-steady-as-traders-brace-for-key-us-macro-events-202507301200

[3] Bitcoin, Ethereum, XRP, Dogecoin Under Pressure As ... https://www.aol.com/bitcoin-ethereum-xrp-dogecoin-under-132642402.html

[4] DOGE, SOL and XRP Lead Altcoin Losses as Rate Jitters ... https://www.coindesk.com/markets/2025/07/29/doge-sol-and-xrp-lead-altcoin-losses-as-rate-jitters-and-leverage-unwind-hit-crypto

[5] Trader Suggests Dogecoin Could Bounce Strongly Off $0.20 https://icobench.com/news/best-meme-coins-to-buy-trader-suggests-dogecoin-could-bounce-strongly-off-0-20/

[7] Bitcoin News Today: Bitcoin lags below $118K as Fed ... https://www.ainvest.com/news/bitcoin-news-today-bitcoin-lags-118k-fed-decision-looms-crypto-market-braces-policy-shift-2507/