Fed’s Hawkish Swoop: Bitcoin’s Bull Run 🏃💨 or Bearish Blunder? 🤔

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Key Takeaways (Because Who Has Time for the Whole Story? 😏)

Fed’s September rate cut odds plummet to 43% – faster than my last diet attempt. 🍩 Will Bitcoin’s bull run survive, or is it time to cue the dramatic music? 🎻

Bitcoin [BTC] took a nosedive to $115.7K after Fed Chair Jerome Powell channeled his inner hawk 🦅 and kept rates steady on July 30th. Shocking? About as shocking as finding out your ex is still single. 🤷‍♀️

While the decision was as predictable as a rom-com plot, Powell’s “wait and see” vibe sent traders into a tailspin. 🌀 He even dropped this gem:

“For the time being, we’re well-positioned to learn more about the likely course of the economy and the evolving balance of risks before adjusting our policy stance.”

Translation: “Let’s sit on our hands and see if the world explodes first.” 🌍💥

Fed Rate Cuts: From “Maybe” to “Meh” 😑

Before Powell’s reality check, September rate cuts were looking hotter than a summer fling. 🔥 Now? A measly 43% chance. Meanwhile, steady rates are at 57% – about as exciting as a Monday morning meeting. ☕

Matt Mena, crypto strategist at 21Shares, spilled the tea: “Looser rates = crypto party time. 🎉 But Powell’s ‘let’s chill’ attitude? Total buzzkill.”

“For crypto, a Fed pivot could serve as a major tailwind. Looser financial conditions and rate cuts have historically fueled risk assets like Bitcoin, which has long acted as a sponge for excess liquidity.”

But hey, Mena’s not throwing in the towel just yet. He’s got his eye on a dovish pivot, like a romantic lead waiting for the perfect moment to swoop in. 💑

“The setup increasingly resembles Q4 2023 – softening inflation, rising political volatility, and a Fed constrained by lagging indicators, which saw Bitcoin end the following year at $100K. The stage is set for a policy pivot. The only question is when.”

BTC bounced back 2% to $118.5K, but altcoins were like, “Nah, we’re good.” 😴 All eyes are now on the PCE Index – because who doesn’t love a good inflation drama? 📈

Mena warns: If $114K-$115K support cracks, BTC could drop to $110K. 🚨 But let’s be real, crypto’s more unpredictable than my love life. 💔

Oh, and let’s not forget BTC’s unrealized profit hitting a record $1.4 trillion. Glassnode’s like, “Uh-oh, sell pressure incoming?” 🤯 But Swissblock’s all, “QE could save the day! 🚀” Because nothing says “financial stability” like printing more money. 💸

Short-term macro pressure? Capping BTC below $120K. 😢 But a Fed pivot mid-term? Cue the rebound fireworks! 🎆 Or not. Because crypto. 🤷‍♀️

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2025-07-31 18:20