Bitcoin Rises After US Fed Holds Rate Amid Hawkish Policy Signals

The US Federal Reserve kept interest rates unchanged at 3.5%-3.75% for the fifth consecutive meeting on July 29, but its policy decision was viewed as relatively hawkish after three of the 12 policymakers dissented in favor of a 25-basis-point rate hike.

Fed Chairman Kevin Warsh reaffirmed the central bank's commitment to bringing inflation back to its 2% target. This has led investors to reassess the outlook for risk assets, including Bitcoin.

Bitcoin was trading at around $64,400 on July 30 after the US dollar and benchmark 10-year Treasury yields strengthened following the Federal Reserve's policy decision. Analysts believe Bitcoin now faces an important technical test as investors assess the combined impact of monetary policy, inflation risks, and geopolitical uncertainty.