Caution Prevails Ahead of Fed Decision
Trading activity in the crypto market remains subdued as investors adopt a “wait-and-see” approach ahead of the Federal Reserve’s policy announcement. Bitcoin is currently trading around $118,100 reflecting a cautious sentiment across the market.
The recent selling pressure from Galaxy Digital was largely absorbed, thanks to strong institutional and corporate buying. Notably, Strategy purchased 21,021 BTC for $2.46 billion, providing crucial support that likely prevented a broader market decline.
However, new headwinds are emerging. Bitcoin’s attempt to reclaim the $120,000 level is under pressure following a sharp uptick in miner activity. According to CryptoQuant, Binance recorded one of the largest single-day miner deposit spikes in months, with over 18,000 BTC (worth more than $2 billion) transferred to the exchange. This was accompanied by a $650 million USDC withdrawal, raising concerns about short-term liquidity despite the otherwise bullish outlook.
Ethereum, the second-largest cryptocurrency by market cap, is trading at approximately $3,810, up 0.26% on the day.
The global crypto market cap stands at $3.87 trillion, down 0.67% over the past 24 hours. Altcoins continue to face downward pressure ahead of the Fed’s rate decision. BNB, AVAX, HBAR, SHIB, DOT, and PEPE are down around 3%, while XRP, SOL, DOGE, ADA, and HYPE have declined by 1–2%.
ETF Flows and Institutional Moves
On July 29, U.S.-listed spot Bitcoin ETFs saw net outflows totaling $83.4 million, while spot Ether ETFs recorded a smaller outflow of $5.1 million.
In corporate news, Nasdaq-listed biotech firm 180 Life Sciences (ATNF) plans to rebrand as ETHZilla after raising $425 million in private funding to shift toward an Ether-centric treasury strategy.
Kraken, a leading U.S. crypto exchange, is reportedly preparing to raise $500 million at a valuation of $15 billion as it explores a potential IPO.
Crypto mining firm MARA Holdings reported a 64% year-over-year jump in Q2 revenue to $238 million, driven by Bitcoin’s price increase and expanded mining operations.
Market Outlook
Bitcoin’s price action will remain sensitive to macroeconomic developments beyond the Fed meeting. Key data releases this week include the U.S. Q2 GDP estimate on Wednesday and the nonfarm payrolls (NFP) report on Friday — both likely to influence investor sentiment in the days ahead.
You need to login in order to Like
Leave a comment