Bitcoin remained largely unchanged on Thursday, maintaining its rangebound movement after the Federal Reserve’s decision to keep interest rates steady, which dampened risk appetite. The focus has shifted to the upcoming U.S. trade tariff deadline.
Key Highlights:
- Bitcoin’s Steady Movement: Bitcoin rose 0.4% to $118,503.1, but remained below the $120,000 mark after a record high earlier this month.
- Fed’s Rate Decision: The Federal Reserve’s decision to hold rates unchanged on Wednesday, along with hawkish signals, reduced the likelihood of interest rate cuts in the coming months, which in turn negatively impacted risk assets, including cryptocurrencies.
- Tariff Deadline: Investors are awaiting the looming August 1 deadline for U.S. trade tariffs, with some traders refraining from large bets ahead of the crucial date.
Market Sentiment:
- The Fed’s hawkish stance has weighed on speculative assets like Bitcoin, which have been adversely affected by rising interest rates over the past two years.
- Weak Chinese PMI data and hawkish signals from the Bank of Japan also contributed to a subdued mood in risk-driven markets during the Asian session.
Crypto Markets and Broader Outlook:
- Ethereum (ETH) and XRP saw modest gains of 1.3% and 0.5%, respectively. Other altcoins like Solana and Cardano showed little movement, while Polygon dropped 0.4%.
- The $TRUMP meme token experienced a decline of 0.5%, highlighting the caution prevailing across the broader crypto market.
With U.S. stock markets poised for strong gains after solid earnings reports from Microsoft and Meta, attention now turns to Friday’s crucial nonfarm payrolls report and the impending trade tariff deadline.
As markets await further developments, especially regarding the U.S.-China trade talks and tariff implementations, Bitcoin and the broader crypto market remain in a holding pattern, reflecting caution among investors.