Bitcoin Slumps Below $63,000 as Fed Interest Rate Hike Hits Crypto Markets
Crypto markets took a hit on July 31, with Bitcoin plummeting below $63,000 after a mix of factors weighed against it. The Federal Reserve's decision to raise interest rates at its meeting on Wednesday, disappointing results from Coinbase Global's earnings report, and doubts over the passage of the Clarity Act all contributed to the decline.
Coinbase stock tumbled 10% following the earnings miss, largely due to low crypto trading revenues. Meanwhile, Bitcoin slipped by 2.9% to $62,929.27, Ethereum fell 2.8% to $1,866.57, and Solana dropped 2.0% to $73.04.
Despite the downturn, it's worth noting that equities have also struggled in recent weeks. Bitcoin actually gained 4.3% in July while the Nasdaq Composite fell by 3.2%. Morgan Stanley's launch of new crypto ETFs this week has helped stabilize the market, but experts warn that stablecoins and agentic AI payments may hold more promise for blockchain technology.
The top performers among cryptocurrencies on July 31 included Figure Heloc, which gained 2.6%, and BNB, which saw a 4.1% increase over the past week.