Bitcoin News Today: Federal Reserve Holds Rates Steady as Crypto Market Drops 4.8% Amid Uncertainty

The Federal Reserve’s decision to maintain interest rates between 4.25% and 4.50% on July 30, 2025, led to a muted and mixed reaction in the cryptocurrency market, with Bitcoin and Ethereum exhibiting divergent performances amid ongoing inflation and geopolitical uncertainties [1]. Bitcoin fell slightly to $117,777, a 0.1% decline following the announcement, while Ethereum rose modestly by 0.4% to $3,809, reflecting uneven investor sentiment [2].

The Fed’s cautious stance, underscored by Chair Jerome Powell’s emphasis on data-driven policy decisions, has reinforced market uncertainty. Despite some political pressure for rate cuts, the central bank indicated only a 2% chance of cutting rates in the near future, prioritizing inflation control over potential economic slowdowns [4]. Inflation, currently at 2.7% annually—its highest since February—continues to be a key factor influencing crypto prices, with investors closely monitoring CPI trends and potential policy shifts [3].

Market volatility was further amplified by the broader economic environment. The cryptocurrency market as a whole fell 4.8% on the day, with altcoins like Ethereum and Solana also under pressure. On-chain activity showed a drop in net realized profits to $1.4 billion, signaling reduced confidence among traders and holders [7]. Additionally, some public companies previously holding Bitcoin as a reserve asset have reportedly started divesting, adding downward pressure on the price [8].

Although Bitcoin briefly surpassed $118,000 on July 30, the rally was short-lived and failed to establish a clear upward momentum. Persistent factors such as the Fed’s policy outlook, tariff policies, and economic uncertainty have constrained price movement, keeping Bitcoin in a consolidation phase [3]. Analysts, including Joe DiPasquale of BitBull Capital, emphasized that future crypto price trends will largely depend on Powell’s tone and any adjustments in the Fed’s economic outlook [5].

The current environment highlights the interplay between macroeconomic indicators and digital asset performance. While the Fed’s rate hold provided some stability, it also introduced caution, with investors advised to monitor inflation trends and policy signals closely [2]. As uncertainty persists, the market remains sensitive to changes in central bank messaging and global economic conditions.

Source:

[1] https://www.ainvest.com/news/bitcoin-news-today-crypto-market-slides-4-8-fed-uncertainty-etfs-draw-79-98m-inflows-2507/

[2] https://www.tradingnews.com/news/bitcoin-price-stalls-in-117k-usd-120k-usd

[3] https://m.economictimes.com/crypto-news-today-live-30-jul-2025/liveblog/122982426.cms

[4] https://www.livemint.com/market/stock-market-news/us-fed-meeting-live-updates-jerome-powell-fomc-policy-decision-today-fed-rate-cut-trump-tariffs-1175****948742.html

[5] https://finance.yahoo.com/news/a-divided-fed-is-expected-to-hold-rates-steady-defying-trumps-calls-for-a-cut-100041741.html

[7] https://www.mitrade.com/au/insights/news/live-news/article-3-998623-20250731

[8] https://www.mitrade.com/au/insights/news/live-news/article-3-998538-20250730