Bitcoin Tumbles Below $118.5K: Fed Jitters & Trade Wars Rattle Crypto

Markets flinch as Bitcoin sheds value amid macroeconomic tremors.

The Fed's latest policy move—paired with fresh tariff threats—sent shockwaves through digital assets.

Volatility is back on the menu, and traders are choking on the uncertainty.

(Bonus jab: Wall Street analysts still can't decide if crypto's a hedge or a hazard—but they'll charge you $500/hr to hear them debate it.)

Fed Decision and Tariff Jitters Weigh on Sentiment

Investor focus remains fixed on the Federal Reserve’s rate decision, with expectations that the central bank will hold interest rates steady. However, analysts remain divided on the Fed’s longer-term stance amid calls for cuts by President TRUMP and signs of economic cooling.

Market concerns are further amplified by impending U.S. tariffs ranging from 15% to 50%, set to take effect at the start of August. Although tariffs don’t directly impact crypto prices, they influence global sentiment and contribute to increased volatility across risk assets like Bitcoin.

Meanwhile, the market is also awaiting a White House report that could outline the U.S. government’s bitcoin holdings and clarify its stance on establishing a strategic Bitcoin reserve.

Bitcoin’s pullback echoed throughout the broader crypto market. Ethereum, the leading altcoin was one of the assets that made a dip, falling by over 2% to $3,781.5.

This caused a Ripple in the altcoin space with some of the major names recording similar drops:

• XRP fell 0.6% to $3.1290
• Solana dropped 2.1%
• Cardano declined 1.6%
• Dogecoin slipped 2.2%
• $TRUMP coin shed 2.6%

With volatility indicators tightening, analysts warn that a significant price MOVE may be imminent as the market awaits the Fed’s outcome and macroeconomic clarity.

Cover image from ChatGPT, chart from Tradingview