Bitcoin dips to $63K as Fed holds interest rates steady

The global digital assets market printed broad red indexes as the Federal Reserve announced that it will maintain the interest rate at 5.25-5.5%. Bitcoin price dropped by 3% over the last day to trade in the $63,000 zone. Ether and Solana also dipped by 4% and 8% respectively.

Bitcoin price retraced to $63,000, the zone it was trading at the beginning of this week. BTC is marginally up in the last 7 days after dipping from the highs of $69,000. The recent surge was a part of anticipation built around US presidential candidate, Donald Trump’s keynote at the Bitcoin Conference.

Bitcoin ETFs record marginal inflow

According to data, Bitcoin spot ETFs saw a positive inflow of $298,900 on July 31. Grayscale Bitcoin Trust ETF (GBTC) saw a net inflow of $0 while its mini ETF reported an inflow of $18 million. BlackRock iShares Bitcoin Trust (IBIT) had an inflow of almost $21 million, leading the category.

Fidelity’s FBTC registered a heavy outflow of $31.57 million. ARK 21Shares Bitcoin ETF (ARKB) and Bitwise’s BITB displayed outflow of $4.61 million and $2.51 million, respectively.

BTC endured a rapid sell-off over the last 24 hours as its price took a dip from $66,500 to $63,500 zone before regaining the $64K. Its 24-hour trading volume is up by 26% to stand at $36 billion depicting traders’ activity during the crunch period. Bitcoin is trading at an average price of $64,479, at the press time.

BTC bulls bleed after FOMC decision

Data provided by Coinglass shows that more than $63 million worth of long and short positions set on Bitcoin price action got liquidated in the last 24 hours. However, $50.40 million worth of bets (79%) liquidated turned out to be long positions. It suggests that traders were hoping for an upward run but BTC price dropped short of expectations.

Bitcoin missed out on a broader market rally driven by comments from the Federal Reserve. The Federal Open Market Committee (FOMC) notified that it maintains the interest rate in line with market expectations. Its statement mentioned that the committee seeks to achieve maximum employment and maintain inflation at a rate of 2% over the longer run.

The Committee believes that risks to achieving its employment and inflation goals are becoming more balanced. However, the economic outlook remains uncertain, and the Committee is mindful of the risks to both sides of its dual mandate.

Federal Reserve Chair Jerome Powell signaled that the central bank is likely to cut interest rates in September. The Committee is carefully assessing incoming data with the evolving economic outlook. It added that the committee will continue to reduce its holdings of Treasury securities, agency debt, and agency mortgage-backed securities.