- The Federal Reserve announced it would keep rates steady at 5.25%-5.5%.
- Bitcoin and the entire crypto market experienced a slight downturn after the announcement.
- Donald Trump begins selling limited edition Bitcoin-themed sneakers.
Bitcoin (BTC) is trading around $64,770, down over 2% in the past 24 hours after the Federal Reserve announced it would hold rates steady.
Bitcoin reacts as Fed reveals rates decision
The Federal Reserve announced it would leave rates unchanged at 5.25%-5.5%, according to market expectations. The news led to Bitcoin and the crypto market experiencing a slight downturn. However, most market participants expect the SEC to cut rates as Q3 approaches a close.
A potential interest rate cut by the Federal Reserve later this year could be a positive factor for risk assets like Bitcoin. Historically, lower interest rate environments have been favorable for cryptocurrencies, as investors tend to seek higher-yielding assets.
Despite the uncertain economic outlook, the prospect of easing monetary policy has bolstered positive sentiment around Bitcoin. However, investors — especially among the short-term holders' cohort — may consider selling their tokens if Bitcoin breaches the 60K psychological level. Such levels could also trigger "aggressive whale accumulation and increased crowd negativity would be the ideal recipe for a big market-wide bounce," noted Santiment.
Bitcoin Social volume chart
Politically, Bitcoin is also in the news as the American polls draw near. Former U.S. President Donald Trump and Republican Presidential Candidate promoted limited edition Bitcoin-themed sneakers on social media after speaking at the Bitcoin 2024 conference. He mentioned that the sneakers could be purchased with Bitcoin or other cryptocurrencies. The BTC gold sneakers high top sold out in less than three hours after Trump announced their launch.
Meanwhile, during his speech at the Conference, Trump promised to fire SEC Chair Gary Gensler and create a "strategic bitcoin reserve" if elected in November. He has also been associated with receiving heavy crypto donations and selling NFT collections.
JUST IN: Donald Trump launches #Bitcoin sneaker collection after speaking at Bitcoin 2024 in Nashville pic.twitter.com/ZVakF14qgS
— Bitcoin Magazine (@BitcoinMagazine) July 31, 2024
As Bitcoin rises, market watchers are keenly observing its potential to surpass the $70,000 psychological resistance level. If Bitcoin maintains a position above this threshold, it could indicate a new wave of bullish momentum and draw more investment into the cryptocurrency market.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.