Fed Rate Decision Sparks Divided Market Expectations for Bitcoin

The Federal Reserve's interest rate decision on July 29 has sparked divided market expectations. According to the FedWatch tool, there is a 64.2% probability that rates stay flat and a 35.8% probability of a 25 bps rate hike.

Fed Chair Warsh has eliminated forward guidance, adding to market uncertainty, as observed by The Kobeissi Letter. Most of the market appeared prepared for no rate hike, but what will be the impact on Bitcoin's price?

Crypto traders are adopting defensive positioning ahead of the policy decision. Bitcoin is down 3.10% over the past week but has rallied 2.10% over the past 24 hours.

The 7-day taker position sank to -3.43, the lowest in a year, indicating significant sell pressure ahead of the FOMC decision. This bearish activity may not dictate the next move's direction, as traders were reducing exposure across exchanges.