*Fed Independence in Question as Crypto Markets Shake Off Losses***

After a turbulent overnight session, major cryptocurrencies have bounced back, reversing earlier losses triggered by the Federal Reserve’s decision to keep interest rates steady at 4.25%. The move came as no surprise to markets, but what stirred deeper concerns were signs of growing political influence over the central bank.

Two key Fed officials, both appointed during the Trump administration, dissented in favor of a rate cut—raising eyebrows over the Fed’s ability to remain independent. With Trump pushing for lower interest rates to ease borrowing costs, the dissent has sparked fears that political pressure could start shaping monetary policy.

Initially, Bitcoin $BTC dropped sharply, briefly touching \$116,000, while other digital assets like Ether $ETH , XRP $XRP , and Solana also saw steep declines. However, the dip was short-lived. By morning, Bitcoin rebounded above \$118,000 and Ethereum climbed back near \$3,870, showing resilience in a volatile macro environment.

Analysts suggest that the underlying message is bullish for crypto in the long term. If trust in central bank independence continues to erode, investors may increasingly turn to decentralized assets as a hedge against inflation and policy manipulation.

The market remains directionless in the short term, with all eyes on the upcoming July CPI report. Rising inflation due to expected tariffs could initially hit crypto prices, but may later strengthen the narrative of Bitcoin and other assets as safe-haven plays.

While there’s no clear trend just yet, uncertainty in traditional financial policy continues to reinforce the relevance of crypto in the modern economy.

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