Bitcoin traders waited to see how the Federal Reserve would decide to handle interest rates, as the price of the cryptocurrency stood in a range between $63,000 and $64,000. The tariff-induced inflation fears, higher Treasury yields, and higher oil prices are all weighing on risk assets.
The overall crypto market fell by 0.68% and reached the value of $2.18 trillion in 24 hours. Risk assets were constrained by weak U.S. equities and the lack of demand for big cap cryptocurrencies on the week.
Ethereum price continued to move around the $1,900 area, while XRP and Dogecoin also showed some lackluster action.
Bitcoin open interest had increased by 1.52%, indicating that leveraged exposure had increased amidst unpredictable market conditions. According to Coinglass data, the losses were almost $400 million, the majority of which were bullish long positions.
Fed Lifts Interest Rates, as Members Grow Dissatisfied with the Current Rate.
The Fed kept its benchmark rate at 3.50% to 3.75% for the fifth straight meeting. The vote was rather anticipated, but the split in voting indicated more people were in favor of tighter monetary policy.
The decision was approved with a vote of 9 to 3 by officials, the biggest number of votes against by officials in the same direction since September 2016. Neel Kashkari and Beth Hammack, plus Lorie Logan, called for a small hike, of 25 basis points. Their stand was indicative of worries on inflation, bond yields, and policy risks of remaining in place.
A 57% chance exists at the September meeting that a rate increase will occur. The rise in Treasury yields could reduce the rally of Bitcoin as higher interest rates tend to crowd out the demand for speculative assets. The next FOMC meeting is in 48 days
Sentiment was also burdened by geopolitical tensions following the United States once again in military attacks against Iran. This is done in response to the Iranian ballistic missile strike on American troops in the Middle East.
After generating $32.11 million in inflows, Bitcoin ETFs continue to lead with BlackRock’s IBIT.
SoSoValue reports that U.S. spot bitcoin ETFs saw net inflows of $32.11 million on July 29th. The IBIT of BlackRock contributed to the most gains of $89.83 million, but withdrawals by other funds decreased the total.
Net outflows at spot ETFs for Ethereum also took a negative swing with losses totaling $18.65 million.
The most new product to receive inflow was the recently launched MSSE from Morgan Stanley with 14.30 million dollars.
Ali Predicts Bitcoin Price Retest of $60K Before Major Breakout.Bitcoin Price Retest of $60K Before Major Breakout, Predicts Analyst Ali.
According to crypto analyst Ali, Bitcoin's price may drop towards $60,000 before trying to make another substantial move.
The decline might help to create the head-and-shoulders reversal pattern on the 12-hour chart, he said. However, the trend has yet to be confirmed since Bitcoin remains below the neckline at $66,500.
Once the price breaks above $66,500, the pattern will be confirmed, and momentum will continue to build towards $67,700. The target of the pattern was measured and the long-term BTC projection was then extended to a level of $74,000.
But if the $60,000 area is not captured the structure could be compromised and the expected breakout could be postponed.
BTC Price Analysis
BTC price surged by 0.90% during the previous candle and is trading at $64,493 on the four-hour chart.
The Relative Strength Index turned up to 53 and momentum moved above the neutral (50) level.
The big picture shows that the MACD histogram is turning positive, marking a positive short-term momentum turn as the price improves from 66.30. The MACD line is also above the signal line, making a bullish crossover below the zero line.