Federal Reserve Decision Sparks Fears of Continued Pressure on Bitcoin Prices
The Federal Reserve has decided to maintain its interest rate target range at 3.50% to 3.75%, with a 9-3 vote in favor of this decision on July 29.
CryptoQuant analyst Novaque Research notes that this move is not the same as cutting rates and does not bring new liquidity stimulus, which may explain why Bitcoin's internal demand indicators are constrained.
Novaque points out that the Coinbase premium index remains deeply negative at -0.11, indicating weaker pricing on Coinbase compared to offshore platforms, which suggests sluggish spot demand in the U.S.
Total open interest is below the 100-day moving average, and CME options exposure has significantly contracted from its peak in the first quarter, further supporting Novaque's assertion that Bitcoin prices will remain under pressure in the short term.