Reserve Dollar

FOMC

Jerome Powell

Chair

Bitcoin

Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) stayed lower at the Aug. 1 Wall Street open as crypto shrugged off fresh central bank interest rate cuts.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/2fc8a1b6-83b0-431d-8839-821c002aa954.png" alt="Bitcoin ignores 100% Fed rate cut odds as BTC price taps 2-week lows" title="">
 <figcaption style="text-align: center;">
 BTC/USD 1-hour chart. Source: TradingView
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<h2 data-ct-non-breakable="true" id="dovish-fed-offers-no-respite-to-bitcoin-bulls">Dovish Fed offers no respite to Bitcoin bulls</h2>
Data from <a href="https://subscription.cointelegraph.com/?_gl=1*7499wx*_ga*MTQ0MzQ0NzI4Ny4xNzE2MzY1NTA0*_ga_53R24TEEB1*MTcxNjM2NTUwNC4xLjEuMTcxNjM2Njg2MC4wLjAuMA..">Cointelegraph Markets Pro</a> and <a href="https://www.tradingview.com/symbols/BTCUSD/?exchange=BINANCE" target="_blank" rel="noopener nofollow">TradingView</a> showed BTC’s price lacking momentum after dropping 2.4% the day prior.
Downside persisted despite the United States Federal Reserve adopting a dovish tone at the latest meeting to decide on interest rate changes.
In a press conference following the Federal Open Market Committee’s (FOMC) decision to leave rates unchanged, Fed Chair Jerome Powell hinted that a cut could come at the next meeting in September.
“We have stated that we do not expect it will be appropriate to reduce the target range for the federal funds rate until we have gained greater confidence that inflation is moving sustainably toward 2 percent,” he said in a prepared&nbsp;<a href="https://www.federalreserve.gov/mediacenter/files/FOMCpresconf20240731.pdf" target="_blank" rel="noopener nofollow">statement</a>. 
<blockquote data-ct-non-breakable="true">
 “The second-quarter’s inflation readings have added to our confidence, and more good data would further strengthen that confidence. We will continue to make our decisions meeting by meeting.”
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 <img src="https://s3.cointelegraph.com/uploads/2024-08/fd08a7cb-ccff-4616-b872-0903182baee3.png" alt="Bitcoin ignores 100% Fed rate cut odds as BTC price taps 2-week lows" title="">
 <figcaption style="text-align: center;">
 Fed target rate probabilities. Source: CME Group
 </figcaption>
</figure>
Markets, which had <a href="https://cointelegraph.com/news/us-national-debt-passes-35t-5-things-bitcoin-this-week">already priced in 100% odds</a> of a September cut, saw this ultimately being 0.25%, per data from CME Group’s <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html" target="_blank" rel="noopener nofollow">FedWatch Tool</a>.
While US equities reacted well to the event, crypto showed little interest in following suit, with BTC/USD hitting local lows of $63,400 — its lowest since July 19.
“The mental illness continues. Historically, liquidity sweeps fail if they’ve been endlessly frontrun,” popular trader Crypto Chase <a href="https://x.com/Crypto_Chase/status/1818966634125480081/photo/1" target="_blank" rel="noopener nofollow">summarized</a> to X followers on the day. 
<blockquote data-ct-non-breakable="true">
 “I don’t have a strong read here, but I think anywhere from mid 61’s to 59 is possible. Bids simply depend on how aggressive/confident you are. Accept below 59 is a bad look.”
</blockquote>
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 <img src="https://s3.cointelegraph.com/uploads/2024-08/c55566ce-059d-4f3a-9fb8-9e8b6323253c.png" alt="Bitcoin ignores 100% Fed rate cut odds as BTC price taps 2-week lows" title="">
 <figcaption style="text-align: center;">
 BTC liquidation heatmap (screenshot). Source: CoinGlass
 </figcaption>
</figure>
Fellow trader CrypNuevo, meanwhile, saw the potential for a <a href="https://x.com/CrypNuevo/status/1818979015429869915" target="_blank" rel="noopener nofollow">short squeeze</a> from near current levels.
Noting that the bulk of liquidation levels lay above, not below, the spot price, he predicted that such an event could come before the weekend.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/7e2ef28d-f4e2-4ed3-a960-8a921d39f10c.png" alt="Bitcoin ignores 100% Fed rate cut odds as BTC price taps 2-week lows" title="">
 <figcaption style="text-align: center;">
 BTC/USD with liquidity data. Source: CrypNuevo/X
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<h2 data-ct-non-breakable="true" id="crypto-markets-on-edge">Crypto markets “on edge”</h2>
Zooming out, trading firm QCP Capital said that inflows into the <a href="https://cointelegraph.com/news/ethereum-etfs-outflows-blackrock-bitwise">newly launched</a> US spot Ether (<a href="https://cointelegraph.com/ethereum-price">ETH</a>) exchange-traded funds (ETFs) could provide a short-term narrative for crypto market sentiment.
Related: <a href="https://cointelegraph.com/news/bitcoin-whales-unprecedented-23b-july-buying-spree">Bitcoin whales go on ‘unprecedented’ $23B July buying spree — New data</a>
“Unfortunately, the rally in equities was not felt in crypto. Crypto experienced a broad sell-off overnight and into this morning,” it wrote in its latest bulletin to Telegram channel subscribers. 
<blockquote data-ct-non-breakable="true">
 “The market remains on edge as traders pay close attention to daily ETH ETF outflows and further supply pressures from Mt Gox and US government.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/538078e4-d046-4bd2-872f-fcf35d1a6c7d.png" alt="Bitcoin ignores 100% Fed rate cut odds as BTC price taps 2-week lows" title="">
 <figcaption style="text-align: center;">
 S&amp;P 500 vs. BTC/USD 1-day chart. Source: TradingView
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QCP saw <a href="https://cointelegraph.com/news/bitwise-investment-chief-crypto-market-still-isnt-bullish-enough">ongoing posturing</a> by US presidential candidates playing a key role for crypto going forward, with markets “potentially rangebound until the next catalyst.”
“Longer-term, discussions among US Presidential candidates and Senators regarding a sovereign Bitcoin reserve, and the potential for other nations to follow suit, could fundamentally alter the cryptocurrency landscape,” it continued. 
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 “The establishment of a U.S. or sovereign ‘put’ on BTC prices may have significant implications, potentially making accumulation on dips a strategic investment approach.”
</blockquote>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin ignores 100% Fed rate cut odds as BTC price taps 2-week lows

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