Fed Rate Decisions & Crypto’s Next Move: Bullish Signals or Bearish Traps?
The Federal Reserve just blinked—and crypto markets are pricing in the chaos.
When traditional finance sneezes, digital assets catch pneumonia. The latest Fed rate pause has traders scrambling to decode whether this is the all-clear signal for risk assets or just another headfake.
Bitcoin's 20% monthly surge suggests institutional money's betting on inflation hedging. Meanwhile, altcoins are swinging like drunk sailors at a liquidity pool party.
Smart money's watching two metrics: the 10-year Treasury yield (still ugly) and stablecoin inflows (suspiciously bullish).
Remember: Wall Street's 'forward guidance' is just horoscopes for MBAs. Crypto doesn't wait for permission to rally—or crash.
$3,610, offering crucial insights into the short-term future of altcoins.
ContentsAnticipated crypto market Movements on August 1stInsights on Ethereum and Altcoins
Anticipated Crypto Market Movements on August 1st
The Federal Reserve is slated to keep interest rates steady, barring any major surprises. Concurrently, tariffs, as announced by former President TRUMP for many nations, will come into effect, mirroring high rates set on April 2nd. With only seven days for over 150 countries to reach collective agreements, it appears unlikely, especially as an agreement with the European Union is still pending.
As August 1st draws near, the market is anticipated to face the following scenarios: crypto Traders Are Rushing to This App – Here’s Why You Should Too
- The April 2nd tariff rates are expected to be largely enforced on August 1st.
- Implementation of these tariffs, post-high inflation data, is likely to heighten inflationary pressure.
- The Fed is expected to highlight tariffs’ adverse effects on inflation projections.
- If tariffs are high, it might signal no interest rate cuts in September.
- While inflation rises and tariffs fuel uncertainty, the Fed might opt to “wait and see,” much to the dismay of Trump, although most Fed members, excluding Powell, agree with this stance.
- Risk markets might diverge negatively due to worries about delayed rate cuts and tariff-driven inflation increases.
Insights on Ethereum and Altcoins
In today’s analysis, Michael van de Poppe focused on the ethereum chart. Following a rally to $1,200, a bearish trend is emerging, with concerns over the risk of lower peaks. This situation poses a threat to the larger altcoin market.
“Following the $1,200 rally, ETH exhibits a bearish trend, forming a lower peak.
For an upward move, a break of $3,800 is needed; otherwise, ETH could fall to $3,400.”
At the time of writing, ETH has dipped to around $3,550, finding buyers at $3,605.
Highlighting a crucial level for Solana
$191 (SOL), Ali Martinez emphasizes the need to maintain the $189 level. After reaching the anticipated peak of $203, SOL has retreated to $190. Continued selling may prompt close monitoring of supports at $189 and $177.
