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Bitcoin momentum loss is pre-FOMC derisking, not a trend change

2025-07-30 00:44:57

Main Idea

Bitcoin's recent price stagnation is attributed to pre-FOMC risk reduction by traders rather than a trend reversal, with key events like the White House crypto policy report and Fed announcements influencing market movements.

Key Points

1. Bitcoin traded between $117,000 and $120,000, with potential to test support levels at $114,000 to $110,000.

2. Key events influencing the market include the FOMC minutes, White House crypto policy report, and Fed Chair Jerome Powell's speech.

3. CME Group’s FedWatch indicates a 98% chance the Fed will maintain interest rates at 4.25% to 4.5%.

4. Crypto traders reduced risk, leading to a drop in Bitcoin's open interest and $173.8 million in long liquidations over 12 hours.

5. Bitcoin's price saw a 45% reduction in volatility, typical before FOMC-related range expansions.

Description

Traders cut risk ahead of Wednesday’s Federal Reserve decision on interest rates, and a long-awaited crypto policy report from the White House.

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