Trade Truce and Fed Decision to Shape Crypto Market Confidence

Monday, Jul 28, 2025 3:17 am ET1min read

A trade truce between the US and Europe, as well as ongoing negotiations between China and the US, is boosting market confidence and supporting risk assets like BTC. The July 25th Federal Reserve interest rate decision will be crucial, with a mild signal potentially alleviating concerns about high interest rates and driving US stocks and high-beta assets like ETH and SOL higher.

Market confidence has been bolstered by a trade truce between the US and Europe, as well as ongoing negotiations between China and the US. This positive development is supporting risk assets like Bitcoin (BTC) and Ethereum (ETH). The July 25th Federal Reserve interest rate decision will be crucial, with a mild signal potentially alleviating concerns about high interest rates and driving US stocks and high-beta assets like ETH and SOL higher.

Bitcoin and Ethereum have seen significant accumulation flares, with Metaplanet purchasing an additional 780 BTC and Sharplink Gaming adding 77,210 ETH. These purchases indicate strong institutional interest in both assets, with analysts expecting higher all-time high (ATH) prices in the near future [1].

The Federal Reserve is expected to keep interest rates steady amid economic uncertainty and inflation concerns. The meeting comes less than a week after President Trump's tour of the Fed headquarters, where he publicly bickered with Federal Reserve Chair Jerome Powell over the renovation project's costs. Despite the political pressure, the Fed is expected to hold rates steady at 4.25 to 4.50 percent. This decision comes as the Fed faces mixed economic data and continued uncertainty [2].

The trade truce between the US and Europe, along with the ongoing negotiations with China, has created a more stable global economic environment. This stability is reflected in the market's confidence in risk assets like BTC and ETH. The Federal Reserve's decision to hold rates steady is also seen as a positive signal, potentially alleviating concerns about high interest rates and supporting market growth.

References:
[1] https://cryptonewsland.com/btc-vs-eth-accumulation-flares/
[2] https://www.thenationalnews.com/business/economy/2025/07/28/fed-meeting-interest-rates/

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