Bitcoin drops after Fed keeps rates unchanged

The U.S. Federal Reserve (Fed) announced its interest rate decision at 2 a.m. Taipei time on the 1st, keeping interest rates unchanged for the eighth consecutive time at 5.25% to 5.50%, as expected. In its post-meeting statement, the FOMC hinted that inflation is approaching its target, increasing market expectations for the Fed to cut interest rates in September. Bitcoin fell 2% to $64,770 after the Federal Reserve announced it would keep interest rates steady, indicating a potential market correction.

•  Federal Reserve announces interest rate decision, hinting at possible interest rate cut in September
•  Bitcoin reacts to Fed rate decision
•  Trump launches limited edition Bitcoin sneakers

 Federal Reserve announces interest rate decision, hinting at possible interest rate cut in September

The US Federal Reserve (Fed) announced in the early morning of August 1, Taiwan time, that interest rates would remain unchanged at 5.25%-5.5%, and said that inflation is close to the target. triggering a slight decline in the Bitcoin and cryptocurrency markets. However, Federal Reserve Chairman Jerome Powell said at a press conference after the meeting that if economic data continues to maintain the current trend, the Federal Reserve may discuss an interest rate cut at the September meeting, which may inject risk assets such as Bitcoin New energy. Historically, lower interest rates have boosted the cryptocurrency market as investors seek higher-yielding alternatives.

 Bitcoin reacts to Fed rate decision

Despite the market’s inherent volatility, Bitcoin’s resilience has been on full display, with many viewing the $60,000 psychological barrier as a potential turning point. While some short-term holders may consider cashing in their profits if Bitcoin breaks through this level, market analysts at Santiment believe the move could pave the way for aggressive accumulation by whales and subsequent market-wide rally. As Bitcoin continues to climb, market observers are eagerly anticipating its ability to break through the $70,000 resistance level. If Bitcoin maintains its upward trajectory and breaks through this psychological ceiling, it could mark the beginning of a new bull run, attracting significant new investment into the cryptocurrency market.

 Trump launches limited edition Bitcoin sneakers

Politically, Bitcoin is also in the news as the U.S. election approaches. Former U.S. President Trump and the Republican presidential candidate promoted limited edition Bitcoin-themed sneakers on social media after speaking at the Bitcoin 2024 conference. He mentioned that the sneakers can be purchased with Bitcoin or other cryptocurrencies. The BTC gold sneaker highs sold out in less than three hours after Trump announced their launch. Trump’s endorsement of Bitcoin as a viable payment option for sneakers further underscores his commitment to the cryptocurrency and its potential to revolutionize the global financial system. In previous speeches, Trump also promised to fire SEC Chairman Gary Gensler and establish a “strategic Bitcoin reserve” if elected in November, underscoring his commitment to a cryptocurrency-friendly government. promise. Additionally, Trump’s ties to massive cryptocurrency donations and NFT collectible sales underscore his growing involvement in the digital asset space, making him a key player in the development of cryptocurrency finance.

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