Entering the Asian market on Wednesday (July 30), ahead of the Federal Reserve's key interest rate decision, Bitcoin's price remained stable, fluctuating around $117,000, awaiting further direction.
After a rebound over the past weekend, Bitcoin has fallen 2%, remaining in a narrow trading range between $117,000 and $119,000 for two consecutive weeks. Meanwhile, Ethereum benefits from over $5 billion in ETF inflows and active derivatives trading, strongly approaching the $4000 mark. Market sentiment for XRP has also clearly improved, with investors hoping for increased regulatory clarity.
Currently, Bitcoin is trading at around $118,100. Despite a slight rebound, overall momentum remains weak. ETF outflows, large holders taking profits around $117,000, and macro factors such as a strong dollar and hawkish expectations from the Federal Reserve are all suppressing Bitcoin's upside potential.
Market indicators overview:
The latest price of Bitcoin is $118,094, down 1.21% for the week. According to Coinmarketcap data, the intraday trading range was between $117,441.44 and $119,273.87.
In the past 24 hours, Bitcoin's trading volume rose by 4.26% to $66.58 billion, while the total market capitalization decreased by 0.59% to $2.34 trillion. Bitcoin's market cap dominance rose slightly by 0.22% to 61.53%.
According to Coinglass data, Bitcoin futures open interest decreased by 2.55% within 24 hours, dropping to $83.6 billion. The total liquidation amount for Bitcoin in the last 24 hours was $3.56 million, which is at a low level. Among them, the liquidation amount for long positions was $3.38 million, while the liquidation for short positions was only $175,840.
As of now, Bitcoin has remained within the trading range of $115,000 to $119,900 for 11 consecutive days. Steve Gregory, founder of Vtrader, told Decrypt: "Despite the recent low volatility, I still believe the price will continue to rise. I expect the next wave of increases will push Bitcoin to $139,000."
Ethereum becomes the market focus
As Bitcoin consolidates, the momentum of several mainstream altcoins that had risen alongside it slows down, leading to overall market fatigue.
Ethereum is currently the center of market attention. Its total open interest has reached $71 billion, significantly higher than Bitcoin's $37 billion, and it also ranks first in global perpetual contract trading volume over 24 hours.
Ethereum is currently trading above $3,700. March Zheng, a partner at Bizantine Capital, stated in a note to CoinDesk: "Ethereum has withstood the test of time, just like Bitcoin since its inception; today, in the eyes of institutions, ETH is likely to have become a strong asymmetric investment opportunity following Bitcoin."
Shashank Sripada, COO and co-founder of GAIA, stated: "Structurally, Ethereum's performance is very healthy." However, he also pointed out that beyond ETF inflows, Ethereum lacks short-term catalysts.
Sripada believes: "This time, the technical structure is different. If Ethereum can break through $4000 with volume, the next target might be $4500-4800."
According to SoSoValue data, U.S. spot Ethereum ETFs have recorded net inflows for 16 consecutive days, totaling over $5 billion. Several analysts previously told Decrypt that they expect Ethereum to set new highs in the next 6 to 12 months.
Gregory is also optimistic about Ethereum, noting that most of the coin's gains occurred in the past six weeks, and he expects it to rise rapidly and strongly in the coming weeks, setting a new historical high.
The Federal Reserve's decision is approaching
Currently, the market focus is on the Federal Reserve's interest rate decision. Most experts predict that when Federal Reserve Chairman Powell appears after the two-day Federal Open Market Committee (FOMC) meeting, interest rates will remain unchanged in the range of 4.25%-4.50%. However, U.S. President Trump has become an uncertain factor in this prediction, exerting immense pressure on Powell to either lower rates or resign.
Yesterday, U.S. stock indices were mixed, while Bitcoin remained roughly flat, trading at $117,000. The market is preparing for Powell's press conference on Wednesday, which is expected to be politically charged.
Trump's attitude towards the Federal Reserve Chairman is unequivocal. Powell has frequently become the target of Trump's sarcasm and ridicule. Just last week, Trump intensified his attacks by personally inspecting the Federal Reserve headquarters and publicly criticizing the 72-year-old former lawyer and investment banker for mismanaging the $2.5 billion renovation project of the Federal Reserve building.
Despite facing tremendous political pressure, Powell seems steadfast in maintaining the current interest rate level. The current inflation rate in the U.S. is 2.7%, higher than the Federal Reserve's target of 2.0%. According to the CME FedWatch tool, the probability of the Federal Reserve not lowering interest rates is 97%. The low volatility in the stock market and Bitcoin also confirms this consensus.
