Bitcoin steadies above $64,000 as Fed rate decision looms
In brief
- Bitcoin added 0.75% to $64,364 before the Federal Reserve's rate decision
- Inflation at 4.1% supports the case for a Fed rate increase—the first in three years
- Gold and silver gains signal market hedging ahead of the Fed announcement
Inflation keeps rate-hike pressure on the Fed
Inflation running at 4.1% makes the case for the Fed to raise the fed funds target rate for the first time in three years. That backdrop has kept crypto volatile. Bitcoin spiked to $66,700 last week before crashing to $62,400 in the wake of a rout in South Korean stocks.
The recent volatility reflects how tightly crypto markets are watching the Fed's calculus. Yet geopolitical shifts are creating cross-currents. A pause in Iran-U.S. hostilities has taken some of the heat out of oil prices and slightly trimmed the odds of an increase, offering some relief to risk assets.
Broader crypto moves
The CoinDesk 20 Index added 0.41% since midnight UTC, with 10 members advancing and 10 declining—a near-perfect split. Ether was down 0.13% on the day, showing muted momentum ahead of the Fed announcement.
Major exchange activity also tracked the cautious mood. Binance held approximately 55% of user funds and 24% of spot market share, and drew net inflows in early July, signaling confidence in the platform even as traders positioned for volatility.
