Bitcoin Price Tumbles While Fed Rates Remain Flat—Opportunity or Red Flag?
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The post Bitcoin Price Tumbles While Fed Rates Remain Flat—Opportunity or Red Flag? appeared first on Coinpedia Fintech News Ever since the Fed’s rates were slashed below 5% back in October 2024, they have been reduced consistently month after month. This drop had a significant impact on the Bitcoin price, as it broke above the consolidation and surged above the $100,000 milestone for the first time in history. Now that the Fed rates remain unchanged at 4.25% to 4.5%, the cautious stance amid persistent inflation and moderate growth could raise some concerns. The Fed noted that economic activity has decreased since the start of the year, while the labour market remained strong and somewhat elevated. Meanwhile, the official remains extremely cautious as they keep a close eye on the possibility of rising uncertainty. The decision to keep the rates unchanged comes as President Trump ramps up pressure on the Fed to cut rates, saying it would boost growth and reduce interest costs on debt. On the contrary, Fed Chair Jerome Powell believes Trump’s tariffs are making some goods more expensive, which may lead to bearish sentiment on the macro. The traders may take Powell’s take as another red flag for sticky inflation risk under potential Trump tariffs. What’s next for Bitcoin price and the crypto markets? What’s Next for Bitcoin (BTC) Price as Technicals Turn Bearish With the rates remaining unchanged, more than $200 million has been liquidated from the markets in the past few minutes. It has been observed that each time Powell speaks, the BTC price corrects. This can be considered a good buying opportunity, as the price usually resumes rising higher after experiencing significant upward pressure. As seen in the above chart, the Bollinger bands are squeezed after a prolonged expansion, suggesting a massive drop in the…
Filed under: News - @ July 31, 2025 3:28 am