Bitcoin Reacts to Uncertain Fed Rate Decision Amid Rare Disagreement
The Federal Reserve is set to announce its rate decision on Wednesday, July 29, with markets divided over the outcome. CME FedWatch data shows a 31.5% chance of a rare 0.25 percentage point hike and a 68.5% probability that rates will remain unchanged at 3.50%-3.75%. Bitcoin has fallen to around $63,683 amid the uncertainty, down nearly 1.9% in 24 hours. The unpredictability stems from Kevin Warsh’s removal of forward guidance as Fed chair, making it harder for markets to anticipate policy moves. The June meeting was unanimous but left no hints about future easing. Inflation data has also weakened the case for a hike: consumer prices dropped by 0.4% in June and annual inflation fell to 3.5%, while core inflation slowed to 2.6%. Analysts suggest that if rates are held steady, it could provide a tailwind for risk assets like Bitcoin. However, any surprise move—especially an increase—could trigger volatility as the dollar strengthens.
Topics: Bitcoin price movement Federal Reserve interest rates