{"id":6132,"date":"2025-07-31T04:11:12","date_gmt":"2025-07-31T04:11:12","guid":{"rendered":"https:\/\/bitcotasks.com\/blog\/bitcoin-drops-below-118-5k-as-fed-decision-and-tariff-fears-shake-crypto-market\/"},"modified":"2025-07-31T04:11:12","modified_gmt":"2025-07-31T04:11:12","slug":"bitcoin-drops-below-118-5k-as-fed-decision-and-tariff-fears-shake-crypto-market","status":"publish","type":"post","link":"https:\/\/bitcotasks.com\/blog\/bitcoin-drops-below-118-5k-as-fed-decision-and-tariff-fears-shake-crypto-market\/","title":{"rendered":"Bitcoin Drops Below $118.5K as Fed Decision and Tariff Fears Shake Crypto Market"},"content":{"rendered":"<p>Bitcoin faced renewed selling pressure on Wednesday, falling 0.45% to $118,446.5 as traders braced for pivotal macroeconomic events.<\/p>\n<p>This drop comes amid heightened caution ahead of the Federal Reserve\u2019s July policy meeting and the looming implementation of steep U.S. tariffs on August 1. Despite a strong July performance, the flagship cryptocurrency remains under pressure due to profit-taking and broader market uncertainty.<\/p>\n<p>The decline follows a stretch of consolidation near the $120,000 level, a psychological resistance zone that prompted selling from long-term holders and institutions. Even Strategy\u2019s historic $2.5 billion Bitcoin acquisition, adding 21,021 BTC, failed to spark a rally, suggesting investor fatigue and risk aversion are taking hold.<\/p>\n<p><img decoding=\"async\" data-recalc-dims=\"1\" loading=\"lazy\" class=\"aligncenter wp-image-796232 size-large\" src=\"https:\/\/www.newsbtc.com\/wp-content\/uploads\/2025\/07\/bitcoin-price-btc-btcusd-4.png?w=860&#038;resize=860%2C479\" alt=\"bitcoin price btc btcusd\" width=\"860\" height=\"479\" \/><\/p>\n<h2><strong>Fed Decision and Tariff Jitters Weigh on Sentiment<\/strong><\/h2>\n<p>Investor focus remains fixed on the <a href=\"https:\/\/www.google.com\/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=&amp;cad=rja&amp;uact=8&amp;ved=2ahUKEwjGpqi0pOSOAxWJhP0HHTErFicQFnoECBgQAQ&amp;url=https%3A%2F%2Ftradingeconomics.com%2Funited-states%2Finterest-rate&amp;usg=AOvVaw3tcvXeS9M-N6wZY8ndB9Oq&amp;opi=89978449\" target=\"_blank\" rel=\"noopener nofollow\">Federal Reserve\u2019s rate<\/a> decision, with expectations that the central bank will hold interest rates steady. However, analysts remain divided on the Fed\u2019s longer-term stance amid calls for cuts by President Trump and signs of economic cooling.<\/p>\n<p>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\u2019t directly impact crypto prices, they influence global sentiment and contribute to increased volatility across risk assets like Bitcoin.<\/p>\n<p>Meanwhile, the market is also awaiting a White House report that could outline the U.S. government\u2019s Bitcoin holdings and clarify its stance on establishing a strategic Bitcoin reserve.<\/p>\n<p><strong>Altcoins Follow Bitcoin\u2019s Retreat<\/strong><\/p>\n<p>Bitcoin\u2019s pullback echoed throughout the broader crypto market. <a href=\"https:\/\/coinmarketcap.com\/currencies\/ethereum\" target=\"_blank\" rel=\"noopener nofollow\">Ethereum<\/a>, the leading altcoin was one of the assets that made a dip, falling by over 2% to $3,781.5.<\/p>\n<p>This caused a ripple in the altcoin space with some of the major names recording similar drops:<\/p>\n<ul>\n<li><strong>XRP<\/strong> fell 0.6% to $3.1290<\/li>\n<li><strong>Solana<\/strong> dropped 2.1%<\/li>\n<li><strong>Cardano<\/strong> declined 1.6%<\/li>\n<li><strong>Dogecoin<\/strong> slipped 2.2%<\/li>\n<li><strong>$TRUMP<\/strong> coin shed 2.6%<\/li>\n<\/ul>\n<p>With volatility indicators tightening, analysts warn that a significant price move may be imminent as the market awaits the Fed\u2019s outcome and macroeconomic clarity.<\/p>\n<p>Cover image from ChatGPT, chart from Tradingview<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin faced renewed selling pressure on Wednesday, falling 0.45% to $118,446.5 as traders braced for pivotal macroeconomic events. This drop comes amid heightened caution ahead of the Federal Reserve\u2019s July policy meeting and the looming implementation of steep U.S. tariffs on August 1. Despite a strong July performance, the flagship cryptocurrency remains under pressure due&hellip;<\/p>\n","protected":false},"author":1,"featured_media":6133,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[245],"tags":[65,111,73,113,70],"class_list":["post-6132","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","tag-bitcoin","tag-bitcoin-news","tag-btc","tag-btc-price","tag-btcusd"],"_links":{"self":[{"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/posts\/6132","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/comments?post=6132"}],"version-history":[{"count":0,"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/posts\/6132\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/media\/6133"}],"wp:attachment":[{"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/media?parent=6132"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/categories?post=6132"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/tags?post=6132"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}