Last week was highly volatile for BTC. On Monday and Tuesday, prices briefly surged to $116,000 but were rejected at that level. Positive news from the U.S. Federal Reserve triggered a temporary recovery, lifting BTC back to $112,000. Despite a 25 basis point rate cut, Bitcoin fell below $106,000 on Thursday, resuming its downward trend.

Crypto See Sharp Losses

Altcoins followed Bitcoin’s decline. Ethereum (ETH) dropped 3.8% to $3,700, while XRP corrected 4.5% to $2.40. BNB, SOL, DOGE, ADA, LINK, SUI, HBAR, and AVAX suffered 7–8% losses, making them the worst performers of the day. Mid- and small-cap coins experienced similar pressure, though ICP rose over 8%, followed by WBT and ASTER.

• Today’s Altcoin Performance:

  • ETH: -3.8%

  • XRP: -4.5%

  • BNB, SOL, ADA, DOGE, LINK: -7–8%

  • ICP: +8%

  • WBT, ASTER: slight gains

Altcoin dominance increased to 58.3% on CoinMarketCap (CMC), while total market capitalization fell below $2.15 trillion.

Significant Market Value Loss

Overall, the crypto market lost more than $120 billion as Bitcoin and altcoins declined. CMC data shows total market capitalization dropped to $3.68 trillion. Investors are cautiously reassessing their positions amid high volatility.

Experts highlight that support and resistance levels are crucial in determining the next market moves. BTC holding near $107,000 will be key in shaping the market trend for the rest of the week.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Bitcoin Drops $4,000: Crypto Market Loses $120 Billion appeared first on Coin Engineer.

However, the decision was not unanimous. Reports indicate deep divisions within the committee, with some members advocating for a more aggressive rate cut, while others preferred a “wait-and-see” approach due to ongoing economic uncertainty.

FED to End Balance Sheet Reduction Program on December 1

One of the most notable aspects of the announcement was the Fed’s decision to end its quantitative tightening program. According to the FOMC statement, the balance sheet reduction process will be fully halted as of December 1, 2025.

Until now, the Fed has been selling an average of $35 billion in mortgage-backed securities (MBS) and $5 billion in Treasury bonds per month. Under the new plan, these sales will stop, and the principal payments from maturing bonds will be reinvested into short-term Treasury bills. This move is aimed at loosening financial conditions, increasing market liquidity, and mitigating the pace of economic slowdown.

FOMC Statement: Inflation Still Elevated, Labor Market Cooling

In its official statement, the Fed noted that the economy continues to grow at a moderate pace, while hiring has slowed and unemployment remains low.
The committee acknowledged that inflation has risen somewhat this year and remains above the target level.

The statement also highlighted growing risks to both sides of the Fed’s dual mandate price stability and employment emphasizing that downside risks in the labor market are becoming more pronounced.

Powell’s Remarks: December Rate Cut “Not Guaranteed”

Following the decision, Fed Chair Jerome Powell held a press conference, providing important insights into the current economic outlook. He stated that another rate cut in December is not guaranteed, and that there are diverging views among committee members:

“There are strong differences of opinion about how to proceed in December. The data remains incomplete, and uncertainty is high due to the government shutdown. In this environment, caution may serve us best.”

Powell also noted that the government shutdown had disrupted data collection, complicating the Fed’s decision-making process. He added that PCE inflation remains around 2.8%, disinflation has begun in the services sector, and that the labor market is showing gradual signs of cooling. Powell’s remarks weakened market expectations for another rate cut in December, signaling a more cautious near-term approach from the central bank.

Market Expectations Shift After Powell’s Remarks

Before the announcement, markets had priced in a 90% probability of another rate cut in December. Following Powell’s cautious tone, that probability fell to around 70%, reflecting investor sentiment for a slower and more measured easing cycle ahead.

In short, while the Fed’s rate cut provided temporary relief, Powell’s comments suggest the central bank is prioritizing stability over speed, keeping both traditional markets and crypto investors on alert for more nuanced policy moves in the months ahead.

Powell: Future Moves Will Be Entirely Data-Driven

Federal Reserve Chair Jerome Powell emphasized that future policy steps will be entirely data-dependent, with a particular focus on labor market indicators as the main determinant for upcoming decisions. He added that the policy rate is now close to a “neutral” level, signaling that any future rate cuts will proceed at a much slower and more gradual pace.

Powell also addressed the impact of rising tariffs, noting that temporary price increases could occur for certain goods. He estimated that this effect might add between 0.2 and 0.4 percentage points to inflation, but stressed that it would be a one-time adjustment.

“Inflation remains above target,” Powell said, “but persistent pressures are weakening.”

His remarks pointed to a measured and cautious easing cycle, rather than an aggressive rate-cut strategy.

Bitcoin and Market Reactions

Immediately after the Fed’s announcement, Bitcoin experienced brief volatility, dropping from $112,000 to $108,200 within minutes. However, following Powell’s “cautious yet dovish” tone, Bitcoin quickly rebounded above $110,000, reflecting a renewed sense of stability among crypto investors.

Meanwhile, gold prices climbed slightly after the rate cut, reaching $3,970 per ounce, as investors sought safe-haven assets amid expectations of looser monetary conditions. Overall, the market’s initial reaction suggests a balance between optimism and caution with Powell’s tone supporting risk assets in the short term while reinforcing a data-driven, gradual approach to future monetary easing.

U.S. Indexes React Neutrally as Markets Await Clarity

The U.S. stock indexes responded neutrally to the Fed’s rate decision. The S&P 500 closed the day with a slight gain, while the NASDAQ rose 0.3%, led by technology stocks. Analysts noted that while the decision could be interpreted positively for the crypto market in the long term, short-term volatility may increase as the U.S. dollar strengthens following the announcement.

The Fed Remains Cautious, Markets in Wait-and-See Mode

Although the 25 basis point rate cut provided short-term relief for markets, the uncertainty emphasized in both the Fed’s statement and Powell’s remarks caught investors’ attention. The decision to end the balance sheet reduction program is viewed as positive for market liquidity, but signals regarding a potential additional rate cut in December remain mixed.

According to experts, the Fed’s next moves will be data-driven and cautious. Unless there is a significant deterioration in the economic outlook, the most likely scenario is that interest rates will remain steady reflecting a measured, stability-focused policy stance in the months ahead.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post The FED Announces Its Highly Anticipated Interest Rate Decision! Here’s How Bitcoin and the Markets Reacted appeared first on Coin Engineer.

According to Lookonchain data, the selloff included 2,373 ETH worth $8.32 million, 7.76 million ENA worth $4.62 million, and 38.86 billion PEPE tokens valued at around $414,700. The move came shortly after Bitcoin’s price dropped to $112,731 within 24 hours, signaling that Hayes anticipated the dip in advance. 

Meanwhile, Julio Moreno, Head of Research at CryptoQuant, stated that Bitcoin has entered the third major profit-taking phase in its current bull cycle. Historically, such phases often mark a correction period that precedes a renewed upward trend. 

Arthur Hayes(@CryptoHayes) sold 2,373 $ETH($8.32M), 7.76M $ENA($4.62M) and 38.86B $PEPE($414.7K) in the past 6 hours.https://t.co/1HymJRPhcj pic.twitter.com/MoJNKUjJaQ

— Lookonchain (@lookonchain) August 2, 2025

Strategic Pullback or Simple Profit-Taking? 

Hayes’ decision appears at odds with his previous bullish outlook. He had predicted Ethereum would eventually reach $10,000, while consistently advocating for rapid altcoin adoption. The recent divestment could suggest a more cautious repositioning rather than a complete shift in sentiment. 

Interestingly, just weeks prior, Hayes had acquired ENA tokens worth $1.5 million at lower prices. This indicates he remains active in early-stage projects, maintaining a broader long-term crypto investment strategy. Despite the selloff, his confidence in the market’s growth potential seems intact. 

In addition, it’s not just Arthur Hayes adjusting positions. Institutional players are also retreating. Spot Bitcoin ETFs witnessed $812 million in net outflows—the second-largest single-day withdrawal on record. Fidelity’s FBTC fund led the exodus with a $331 million pullback. 

Spot Ethereum ETFs also reported notable outflows, reflecting broader investor caution. This trend suggests risk appetite is decreasing and that investors are bracing for further market volatility. 

Global Headwinds Build as Hayes Waits on the Sidelines 

Hayes’ recent sell decisions might also reflect macroeconomic factors rather than crypto-specific concerns. The White House has announced new tariffs targeting over 60 countries, set to take effect on August 7. The U.S. Federal Reserve warns this could drive inflation higher. Hayes had previously cautioned investors about geopolitical shocks creating heightened volatility. 

Thus, his selloff—particularly in ETH and PEPE—may not signal a bearish reversal, but rather a temporary repositioning. Hayes appears to be stepping back from short-term turbulence while staying invested in the long-term potential of select altcoins. 

This approach reinforces a fundamental principle in investing: risk management remains critical, even in bullish markets.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Bitmex Arthur Hayes Sells Million Dollars in 3 Crypto Assets! appeared first on Coin Engineer.

FED Rate Reductions Expectation

Although the markets have been expecting a rate cut by the Federal Reserve in the near future, the expected rate cuts have not yet begun. Rick Rieder, BlackRock’s Global Fixed Income Chief Investment Officer, sees a rate cut by the Fed as an optimistic expectation. According to Rieder, recent employment data and inflation dynamics do not warrant a rate cut that would require the Fed to act immediately.

Rick Rieder: “Fed Won’t Rush to Cut Interest Rates”

According to Rick Rieder’s statements, the employment and inflation data published by the US do not create a situation that would require an immediate interest rate cut by the FED.

It is thought that there will be no rush as inflation data and employment data are not in a position to require the FED to cut interest rates.

Employment Data: Latest data show that the labor market is still stronger

Inflation Resilience: Core CPI hovers around 3%, allowing the FED to ease its hand

Market Foam: Excessive optimism in equities may push the Fed to be more cautious. Especially with the advent of tariffs, there has been a significant outflow of money from the US stock market. This suggests that the FED needs to be more careful in its monetary control.

FED Rate Cuts and Market Expectations

The FED’s interest rate cuts were expected to be gradual by the market starting from the first quarter of 2025. However, these expectations could not be met with the developments. In the crypto sector, eyes were also turned to a possible interest rate cut by the FED. The issue of customs duties and global crises delayed the FED’s interest rate cuts.

With the postponement of interest rate cuts by the FED, there was a decline in the cryptocurrency sector as expectations were not realized in the first quarter of 2025. There was also great pressure on altcoins, especially Bitcoin.

Eyes are now set on the 2nd quarter of 2025. With the improvement in employment and inflation data, a gradual interest rate cut is expected in the 2nd quarter. The issue of customs duties stands as one of the strongest factors that will trigger or postpone interest rate cuts at this point.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

*DOES NOT CONTAIN INVESTMENT ADVICE*

The post Will the Expected FED Rate Cuts Come? appeared first on Coin Engineer.