Bitcoin falls to $117.9K amid Fed and tariff uncertainty
Bitcoin declines 0.8% to $117,911.3 as traders stay cautious amid Fed and tariff uncertainties before August 1 deadline.
Bitcoin faces profit-taking despite Strategy’s $2.5 billion purchase; Fed expected to maintain interest rates amid uncertainties.
Traders remain risk-averse amid Fed uncertainties and upcoming tariffs of 15% to 50% starting August 1.
Bitcoin's decline prompts profit-taking; Ethereum stabilizes at $3,807.44, while XRP, Solana, and Cardano also fall.
Bitcoin Sees Minor Setback Amid Market Caution
On Wednesday, Bitcoin experienced a slight decline as it extended its losses from earlier in the week. Traders remained cautious ahead of the Federal Reserve's imminent interest rate decision and an upcoming August 1 deadline for President Donald Trump's tariffs.
The world’s foremost cryptocurrency—Bitcoin decreased by 0.8%, bringing the price down 117,911.3 by 01:32 ET (05:32 GMT). This drop follows a period of stability after it briefly surpassed the 123,000 mark in mid-July.
Profit-Taking and Corporate Moves Impact Prices
Despite Bitcoin's strong performance for the month, the recent surge left it vulnerable to profit-taking. The cryptocurrency received little momentum from major corporate holder Strategy (previously MicroStrategy), which announced it had raised $2.5 billion to acquire around 21,021 more Bitcoin.
The market remained on edge leading up to the conclusion of the Fed's meeting on Wednesday, where most analysts predict that the central bank will maintain current interest rates despite increasing calls from Trump and his allies for reductions.
Federal Reserve’s Stance and Tariff Concerns Weigh on Sentiment
The uncertainty surrounding the Fed’s approach has left many traders feeling risk-averse. Analysts suggest that the Fed may adopt a less stringent position amid concerns about the potential effects of Trump's tariffs and signs of instability in the labor market.
The recent signing of a trade deal between the U.S. and the European Union provided limited relief, as major global economies still face substantial U.S. tariffs beginning August 1. These tariffs, set between 15% and 50%, contribute to a climate of apprehension, underscoring that while interest rates and tariffs do not directly dictate crypto prices, they do influence overall market sentiment that affects speculative assets.
Broader Crypto Market Retreats Alongside Bitcoin
As Bitcoin retraced its steps, other cryptocurrencies followed suit.
Ethereum, stabilized at 3,807.44
XRP fell 0.6% to $3.1290.
Solana decreased by 2.1%
Cardano by 1.6%
Dogecoin saw a decline of 2.2%
$TRUMP dropped by 2.6%
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