Bitcoin’s price remains steady as investors worldwide await the Federal Reserve’s critical interest rate decision. Will the Fed hold rates, and how will it impact the cryptocurrency market? Here’s the latest Bitcoin news you need to know.
Bitcoin Price Stability Amid Fed Rate Decision Anticipation
As of Tuesday, July 29, 2025, Bitcoin traded at $117,607.17, showing minimal movement with just a 0.55% decline in 24 hours. The cryptocurrency fluctuated between $117,441.44 and $119,273.87, reflecting cautious market sentiment.
Why the Fed Rate Decision Matters for Bitcoin
- The CME FedWatch Tool shows a 97% probability of rates holding at 4.25-4.50%
- Persistent inflation at 2.7% (above the Fed’s 2% target) influences the decision
- Political tensions between President Trump and Fed Chair Jerome Powell add uncertainty
Key Bitcoin Market Metrics to Watch
| Metric | Value | Change |
|---|---|---|
| 24-hour Trading Volume | $66.58 billion | +4.26% |
| Market Capitalization | $2.34 trillion | -0.59% |
| Bitcoin Dominance | 61.53% | +0.22% |
Political Tensions Add Uncertainty to Fed Decision
President Trump’s public criticism of Fed Chair Powell, including remarks about the central bank’s $2.5 billion renovation project, creates additional market uncertainty. However, analysts believe the Fed will likely maintain its independent stance.
What to Expect After the Fed Announcement
While markets have largely priced in a rate hold, Jerome Powell’s press conference could move markets. Key factors to watch include:
- Future rate hike projections
- Inflation outlook commentary
- Any response to political pressure
The cryptocurrency market, particularly Bitcoin, remains in a holding pattern as traders await clarity from the Federal Reserve. With Bitcoin’s price showing remarkable stability despite the uncertainty, the coming days could see increased volatility depending on the Fed’s messaging.
Frequently Asked Questions
Why is the Fed rate decision important for Bitcoin?
Interest rate decisions affect investor risk appetite. Higher rates typically make safer assets more attractive, potentially reducing demand for cryptocurrencies like Bitcoin.
How accurate is the CME FedWatch Tool?
The tool has historically been about 90-95% accurate in predicting Fed rate decisions based on futures market pricing.
What happens to Bitcoin if the Fed holds rates?
Markets have largely priced in a hold, so Bitcoin might see limited immediate reaction unless Fed commentary suggests future policy shifts.
Could political pressure actually influence the Fed’s decision?
While the Fed is designed to be independent, sustained political pressure could eventually influence policy, though likely not in the short term.
