Fed Uncertainty Pressures Crypto Market
Crypto markets were under pressure on Wednesday after the Federal Reserve decided to maintain its benchmark interest rate at 4.25%–4.50%, without signaling a rate cut before September. Fed Chairman Jerome Powell stated that no decision had been made regarding a rate cut at the upcoming meeting, creating market uncertainty that immediately triggered a sell-off in digital assets.
Bitcoin (BTC) fell around 0.5%–0.7% to around $117,800–$118,400, after peaking near $123,000 in mid-July. Ethereum and XRP also experienced sharper corrections. Selling pressure was further exacerbated by the Coinbase Premium index turning negative—signaling a decline in institutional buying interest from the US after 62 consecutive positive days.
This risk-off sentiment was compounded by concerns over the impact of President Trump's tariffs on inflation, which the Fed said had not provided any clarity on short-term policy. The market is now shifting its focus to the regulatory framework and the potential for adoption boosts as stablecoin policies are regulated through new legislation—such as the GENIUS Act—which is expected to strengthen the broader crypto ecosystem.
Source: Newsmaker.id
