Bitcoin, Ethereum Slump as Fed Fears Offset Geopolitical Optimism
Bitcoin and Ethereum struggled to maintain momentum at the end of July as investors grew cautious over US interest rates. The two cryptocurrencies had shown initial promise after a pause in US-Iran hostilities sent oil prices lower, but their rally quickly faded by July 31.
BTC began the week above $65,000, while Ethereum outperformed initially, advancing to nearly $1,950 as investors rotated into alternative cryptocurrencies. However, hawkish signals from the Federal Reserve and continued uncertainty in the Middle East weighed on sentiment.
By July 31, Bitcoin was trading around $63,870, leaving it roughly 2% below its early-week level, while Ethereum had retreated about 3% to $1,890. Both declined more than 1% during the session, struggling to escape the key range of $62,000-$65,000 for BTC and failing to hold above the psychologically important $2,000 mark for ETH.
The volatility suggests that investors remain uncertain about the future direction of crypto markets in a challenging economic environment.