Bitcoin Remains Rangebound Amid Trade Talks and Fed Decision

Bitcoin stayed steady near $119,000 on Tuesday as investors awaited further clarity on U.S. trade negotiations and remained cautious ahead of the Federal Reserve’s policy decision scheduled for Wednesday.

The world’s largest cryptocurrency had been trading sideways for most of July after reaching a record high above $123,000 earlier this month. As of 02:35 ET (06:35 GMT), Bitcoin was down 0.4% at $119,001.6, though it is on track for its fourth consecutive monthly rise.

Trade Talks and Fed Decision Dominate Market Sentiment

U.S. Trade Negotiations
With the August 1 deadline approaching, markets are focused on ongoing U.S. trade talks with key partners, particularly the European Union and China. If no trade deals are reached by the deadline, Washington is expected to impose additional tariffs.

This trade uncertainty is contributing to investor caution, and traders are waiting for more information on whether any concrete agreements will be finalized to avert the tariff hikes.

Federal Reserve Policy Decision

The Federal Reserve’s policy meeting set for Wednesday is also a key point of focus for markets. The central bank is expected to keep interest rates unchanged at 4.25%–4.50%. However, investors will be closely monitoring any signals from the Fed regarding the potential for future rate cuts later in 2025. Persistent inflation above the Fed’s 2% target has added to the uncertainty, making investors keen to understand the Fed’s future monetary policy stance.

Cryptocurrency Regulation Report Looms

In addition to trade and interest rate concerns, a U.S. Treasury report on cryptocurrency regulation, set to be released on July 30, is adding to the cautious mood. This report is expected to shed light on key issues such as stablecoin oversight, tax policy, and possible enforcement actions, all of which could significantly impact the crypto markets.

Bitcoin ETF Decision Delayed

The U.S. Securities and Exchange Commission (SEC) has delayed its decision on the Truth Social Spot Bitcoin ETF proposal, which was submitted by Trump Media & Technology Group. The decision, originally due on August 4, will now be pushed back to September 18. This delay is part of a broader regulatory stance under new SEC Chair Paul Atkins, who has paused several high-profile crypto ETF filings for further evaluation.

Altcoins Drop Amid Bitcoin Consolidation

While Bitcoin’s price remains relatively stable, most altcoins saw steeper losses. Ethereum dropped 2.5% to $3,816.49, and XRP fell 4.2% to $3.15. Other notable drops include Solana (down 4.5%), Cardano (down 5.5%), and Polygon (down 5.3%).

Among meme tokens, Dogecoin plummeted 7%, and $TRUMP lost more than 6% following a disappointing reaction to market developments.

Bitcoin is holding steady at around $119,000, awaiting clarity on trade talks and the Federal Reserve’s policy outlook. The uncertainty surrounding U.S. tariffs, interest rates, and upcoming cryptocurrency regulation reports is keeping investors on edge, while altcoins are experiencing sharper losses. Investors will be watching closely for any shifts in U.S. policy and economic data, including the July jobs report and PCE inflation data later this week.