This week, Bitcoin's price ended a 16-day consolidation period by closing below its lower consolidation level at $115,000.

The US Federal Reserve has maintained interest rates in the range of 4.25% to 4.50% for the sixth time running.

This week, the White House published its crypto report, in which it urged for more precise regulation.

Whether this is just a momentary ploy or the start of a more substantial downturn is currently up in the air as traders assess the breach's importance.

Interest rates remain unchanged by the Fed
On Thursday, the price of bitcoin finally broke out of its consolidation and fell below $116,000, its previous low. The consolidation period, which lasted for sixteen days, ended the day after Wednesday's interest rate announcement by the Federal Reserve.

Although US President Donald Trump and his supporters put a lot of pressure on the Federal Reserve to reduce borrowing costs, the Fed has left interest rates constant in the 4.25%-4.50% level for five straight meetings.

Riskier assets like Bitcoin should be worried about Fed Chair Jerome Powell's hawkish posture, which was on full display during the press conference that followed the meeting. Powell stressed that the central bank has not decided whether to lower rates in September. In addition, the CME Fedwatch Tool showed that the likelihood of a September reduction decreased from around 60% before to the meeting to 43% after the press conference.

But Federal Reserve Governors Christopher Waller and Michelle Bowman were against the move. Two governors disagreed on a rate decision for the first time since 1993.

Now, investors are waiting for Friday's Nonfarm Payrolls (NFP) report, which is expected to provide Bitcoin with new momentum.

The crypto markets are becoming more unpredictable due to Trump's tariff negotiations.


In recent days, news about the trade war has been all over the place. The week began on a positive note with the US and EU announcing an agreement, followed by the US and Japan making a similar statement. There have been ongoing discussions with China, according to the White House.

However, by mid-week, with the August 1st deadline drawing near, negotiations with other important trade partners like India, Canada, or Australia were still afoot. Trump also imposed a massive 50% duty on Brazilian imports and a 50% tariff on all semi-finished copper goods and derivatives that are heavy on copper, beginning August 1.

According to the Kobeissi Letter, Trump has imposed a plethora of additional tariffs on many nations, including numerous in Southeast Asia (seen below), as well as Switzerland (39%), South Africa (30%), and others. The implementation of these levies is scheduled for Friday at midnight. As a consequence of Amazon's disappointing earnings report, the S&P 500 futures are down only 10 points.

If this had been published in April, the S&P 500 would have fallen by 3%. Markets are no longer shocked by the trade war, according to Kobeissi.


On that day, Bitcoin's price steadied at roughly $111,700, suggesting that the revelation had a subdued effect. Due to the omission of crucial information on the Bitcoin Strategic Reserve, market players probably paid little attention to the text.

On the other hand, suggestions that the US SEC lay out explicit rules for the creation of tokenized treasuries and stocks are important points of interest. Furthermore, it demands that authorities define "permissible bank activities" in relation to blockchains and stablecoins, make the process by which entities may get bank charters more transparent, and revamp bank capital regulations to account for the unique dangers posed by digital assets.


"Coinbase crypto wallets and Chase bank accounts are expected to go live next year," Bloomberg said.

As the collaboration promotes more acceptance and cooperation between conventional banks and crypto platforms, it bodes well for the future of the cryptocurrency sector as a whole, including Bitcoin.

The US SEC has decided to approve orders allowing approved participants to create and redeem crypto ETP shares in kind, according to a press statement issued on Tuesday by the agency.

Spot Bitcoin and Ethereum ETPs previously could only be created or redeemed with cash, but this order changes that. By bringing crypto products in line with more conventional commodity-based ETPs like oil and gold, this change in regulation represents a departure from the prior cash-only process used for spot Ethereum and Bitcoin ETPs.

On July 14, Bitcoin hit a new monthly high of $123,218—an increase of 8.13%. Traders in Bitcoin had a positive return of 1.60% on average in August, according to Bitcoin's historical statistics. August might be a profitable month for traders if regulations are clarified, ETF demand keeps rising, tariffs and geopolitical anxiety subside.

It is possible that Bitcoin can continue its fall and retest the $112,951 50-day Exponential Moving Average (EMA) if the current trend continues.


#MarketPullback #TrumpTariffs #FOMCMeeting #WhiteHouseDigitalAssetReport $BTC