Fed Leaves Rates Unchanged: Bitcoin Fights to Hold $64,000
The Federal Reserve left its benchmark rate unchanged at 3.50%-3.75% on July 29, extending its pause for a sixth consecutive meeting as policymakers continue to assess persistent inflation.
The Fed said, “Inflation remains elevated relative to the Committee’s 2 percent goal,” adding that supply shocks, including higher energy costs, continue to push prices higher.
The statement also said economic activity continues to expand at a solid pace and unemployment has changed little despite uncertainty partly linked to the Middle East conflict, supporting the Fed’s cautious stance.
The hold was far from unanimous. The FOMC approved it by a 9-3 vote, with Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari and Dallas Fed President Lorie Logan all preferring a quarter-point rate increase. The unusually hawkish split shows that pressure for tighter policy is building inside the central bank, making Chair Kevin Warsh’s comments particularly important for Bitcoin and the wider crypto market.
For crypto, the hold avoided an immediate tightening shock, but the three votes for a hike limit any dovish interpretation and keep near-term liquidity expectations cautious.
With futures markets assigning over 60% probability to a hold before the announcement, much of the decision had already been priced in. Bitcoin consequently showed a controlled reaction around the announcement and was trading near $64,400 after the release.
BTC is also back above and holding its important 0.236 Fibonacci retracement, while the 50-day simple moving average sits directly below the same area. Together, the two levels form a concentrated support zone that buyers need to defend to preserve the current structure.
Altcoins also moved higher in the hour around the release. Ethereum gained 1.5%, XRP 1.5%, Solana 0.7% and BNB 0.3%.
The rate announcement may therefore prove less important than the guidance that follows it. Kevin Warsh’s remarks could move Bitcoin and the broader crypto market, particularly if he treats the energy-driven inflation shock as persistent or supports the dissenters’ case for another rate increase.
Markets are also waiting for Japan’s rate decision, which could affect global liquidity and risk appetite. A surprise from either central bank would leave Bitcoin’s current support zone facing a more meaningful test.
- Update – 18:34 UTC
In the first 30 minutes after the Fed’s announcement, Bitcoin initially moved lower, falling to $63,800.
- Update – 19:30 UTC: Warsh Vows to Bring Inflation Back to 2%
Fed Chair Kevin Warsh struck a firmly hawkish tone during the press conference. “We’re going to deliver 2% inflation, and not a whisper more,” he said. Warsh added that he is examining “a broader set of inflation data than PCE” to understand the underlying and more generalized movement in prices.
Warsh also identified AI investment as a source of real economic growth. Spending on AI-related technology equipment and software is rising nearly 20% year over year, helping sustain manufacturing output and laying the groundwork for future expansion.
For crypto, the message is mixed. Stronger growth can support risk appetite, but it also gives the Fed more room to keep rates elevated, limiting liquidity for Bitcoin and altcoins while inflation remains above 2%.
Kosta has reported on cryptocurrency markets and blockchain infrastructure since 2020, bringing over six years of hands-on experience in the crypto industry built through daily tracking of markets, trends, and emerging blockchain developments. Specializing in Bitcoin on-chain analysis, institutional ETF flows, and digital asset price action, his work at Coindoo has been cited by other news agencies and consistently covers market developments with a focus on data-driven reporting across Bitcoin, Ethereum, Solana, and XRP. Over the years, Kosta has contributed to multiple crypto media outlets in different regions, authoring over 6,000 articles across the sector. His reporting spans cryptocurrency markets and the broader fintech industry, tracking not only price action but also the technological and regulatory forces shaping the ecosystem. To support his analysis, Kosta actively leverages on-chain data and metrics from leading platforms such as Santiment, Glassnode, and CryptoQuant, enabling deeper, evidence-based market insights. He believes in the power of transparency and the data that underpins the blockchain ecosystem. His academic background in Marketing Management from Denmark further complements his analytical approach, adding a strong understanding of communication strategy and content positioning to his work.
