Bitcoin remained relatively stable around the $118,000 mark following Wednesday’s Federal Reserve announcement to keep interest rates unchanged at their current range of 4.25% to 4.5%. The central bank maintained its cautious approach as it continues to navigate persistent inflationary pressures alongside moderate economic expansion.
Fed officials acknowledged that economic activity has decelerated during the first six months of the year, though they emphasized the labor market’s continued strength. They characterized inflation as remaining “somewhat elevated” and indicated their commitment to closely monitoring incoming economic data, noting that uncertainty surrounding the economic outlook persists at elevated levels.
Dissenting Voices Within the Fed
The decision wasn’t unanimous, with two Federal Reserve governors breaking ranks to voice their opposition. Michelle Bowman and Christopher Waller both dissented from the majority decision, instead advocating for an immediate 25 basis point reduction in rates. Their position reflected concerns that the current monetary policy stance might be overly restrictive for current economic conditions.
The Fed also reaffirmed its commitment to continuing quantitative tightening measures, providing no indication of a shift toward quantitative easing or other significant policy changes in the near term.
Political Pressure and Market Expectations
The rate decision occurred against a backdrop of intensifying political pressure, with Trump escalating his calls for the Federal Reserve to implement rate cuts. The former president has argued that lower rates would stimulate economic growth while simultaneously reducing the government’s debt servicing costs.
$Btc still holding 117k, if we manage to hold if even after #FOMC then we gona target range high at 119.5-120k, fib 0.236 still holding technically it means the uptrend is strong, but loose 117k and you know what we said 110k. pic.twitter.com/GerKyRjuR8
— Ulvan (@LifeNCrypto1) July 30, 2025
Market participants showed a measured response to the Fed’s decision, with rate cut expectations for September experiencing a slight uptick. According to data from the CME FedWatch Tool, the probability of a September rate reduction increased to 61% following the announcement, recovering from a brief dip to 56% that occurred just before the Fed’s statement was released.
Crypto Market Sentiment
The Fed’s decision to maintain current rates while facing internal dissent may contribute to continued uncertainty in risk assets like Bitcoin. The modest increase in rate cut expectations could provide some support, though the central bank’s cautious stance on inflation suggests volatility may persist in the crypto markets.
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