FOMC's Hawkish Tone Sparks Market Turmoil as Crypto Seeks Next Catalyst

The Federal Reserve's latest policy decision has sent shockwaves across global markets. In a closely watched move, the FOMC held interest rates steady at 3.50% to 3.75%, but policymakers' hawkish tone left investors on edge.

Three regional Fed presidents dissented from the majority vote, highlighting ongoing concerns about inflation and economic growth. The decision sparked heavy liquidations, with between $280 million and $316 million erased across nearly 90,000 to 96,000 traders.

Beyond traditional markets, Bitcoin initially welcomed the news, surging to almost $64,700 before pulling back. Ethereum traded near $1,900, while Bitcoin ETFs reversed their multi-day outflows with $32.1 million in net inflows on July 29.