Bitcoin Pullback as Markets Expect Federal Reserve to Keep Interest Rates Unchanged

Bitcoin's recent gains were largely reversed after briefly crossing $66,900 on July 26, dipping to $64,466. The price pullback followed a week of strong growth, which saw U.S. spot Bitcoin ETFs record over $900 million in net inflows.

The heavy inflow was led by BlackRock's IBIT and Fidelity's FBTC, reversing June's significant outflows. However, the rally lost steam after ETFs saw $225 million in net outflows on July 23, largely due to IBIT redemptions, coinciding with Bitcoin's pullback.

Markets expect the Federal Reserve to keep interest rates unchanged at its upcoming meeting, but there is a roughly 34% chance of a rate hike priced in.