Bitcoin News Today: Fed Holds Rates as Tariffs Fuel Crypto Volatility Amid Uncertain Rate-Cut Outlook

The Federal Reserve’s upcoming interest rate decision and the enforcement of new tariffs on August 1st have positioned global markets at a critical juncture, with cryptocurrency assets under close scrutiny for potential volatility. Analysts highlight that the Fed’s decision to maintain rates amid rising inflationary pressures from tariffs could delay anticipated rate cuts, complicating crypto market dynamics. Meanwhile, Ethereum’s bearish technical indicators and Solana’s fragile support levels underscore short-term risks for altcoins.

The Fed is widely expected to keep interest rates unchanged in its next meeting, as the implementation of Trump-era tariffs on over 150 countries—mirroring April 2nd’s high rates—risks exacerbating inflation. Market observers note that the central bank is likely to emphasize the adverse impact of these tariffs on inflation forecasts, potentially signaling a “wait and see” approach to rate cuts. This stance contrasts with Trump’s public demands for aggressive reductions, which have already spurred speculation about 2026 policy easing from bond traders and prediction markets [1]. However, with time running short for global tariff negotiations and no immediate agreement in sight, the September rate-cut window remains uncertain [2].

Ethereum’s price action reflects growing bearish sentiment, with Michael van de Poppe identifying a critical breakdown below $3,800 as a key threshold. Current levels near $3,550 have drawn buyers at $3,605, but a sustained move above $3,800 is seen as necessary to avoid a decline to $3,400. Solana’s recent retreat to $190 after testing $203 also raises concerns, with $189 and $177 marked as critical support levels. Analysts caution that prolonged selling pressure could trigger further corrections across altcoins [3].

Historical correlations between Fed rate cuts and crypto rallies remain a focal point for investors. Bitcoin’s recent dip below $117,000, despite record highs, and Ethereum’s stabilization near $3,700 highlight market sensitivity to macroeconomic signals. Goldman Sachs has joined market prediction platforms like Kalshi in forecasting a potential September rate cut, but outcomes will hinge on upcoming data including the July 29–30 Fed meeting and August CPI figures [4]. Regulatory developments, such as the proposed GENIUS and CLARITY Acts, could further influence investor confidence, though crypto’s near-record levels suggest momentum will depend on capital reallocation from traditional markets [5].

Sources:

[1] [Bond Traders Step Up 2026 Fed Cut Bets After Trump ...](https://www.bloomberg.com/news/articles/2025-07-23/bond-traders-step-up-2026-fed-cut-bets-after-trump-bashes-powell)

[2] [Wall Street is Warming Up to Rate Cuts—Will Crypto Be the ...](https://cryptonews.net/news/finance/31300662/)

[3] [Fed’s Interest Rate and Crypto Market Dynamics: What’s Next?](https://coinmarketcap.com/community/articles/68810827ced23c1f24753b31/)

[4] [Bitcoin slips below $117000 amid ETF outflows](https://www.msn.com/en-in/news/other/bitcoin-slips-below-117-000-amid-etf-outflows-all-eyes-on-fed-chair-powell/ar-AA1J2GKy)

[5] [Here's What Could Happen to Cryptocurrency if Trump ...](https://www.nasdaq.com/articles/heres-what-could-happen-cryptocurrency-if-trump-fires-jerome-powell)