Bitcoin has remained relatively stable, trading in a tight range between $117k and 119k as investors digest a mix of critical macroeconomic signals from the United States. The crypto market showed limited volatility following the U.S. Federal Reserve's decision to hold interest rates steady and the release of GDP data that showed the impact of trade tariffs.
In its highly anticipated meeting on July 30, the Federal Open Market Committee (FOMC) decided to maintain the key benchmark interest rate in the 4.25%–4.50% range. This move was widely expected by market participants. Fed Chair Jerome Powell stated the central bank remains committed to its dual mandate of maximum employment and price stability, noting that "inflation remains somewhat elevated." The committee also acknowledged that tariffs could push prices higher. The decision was not unanimous, as two members voted to cut rates by 0.25 percentage points.
At the same time, economic data painted a complex picture. The U.S. Gross Domestic Product (GDP) grew at a 3% annual rate in the second quarter of 2025, rebounding from a 0.5% contraction in the first quarter. However, analysts note the strong Q2 figure "overstates the economy's underlying strength" as it was heavily influenced by volatile trade flows caused by tariffs. A report from the Yale Budget Lab estimates that the 2025 tariffs will lower real GDP growth by 0.5 percentage points in both 2025 and 2026. In the long run, the tariffs are expected to shrink the size of the U.S. economy by 0.4%.
Bitcoin's reaction to these events has been muted. The cryptocurrency rose 1% over the past 24 hours, maintaining levels above $118,000. Historically, rate cuts have been a positive factor for cryptocurrency markets, as they reduce the appeal of traditional savings and push investors toward riskier assets. However, with the Fed holding its stance, the market appears to be in a wait-and-see mode. Market analysis shows Bitcoin remains in a consolidation phase, with key support levels around $112,000-$115,000. While some analysts see the potential for a breakout toward $125,000, others caution of a potential further correction if support levels fail to hold.