The Federal Reserve will reveal its July interest rate decision on Wednesday, July 29th, a move that has captured the attention of traders across crypto markets. Bitcoin recently climbed back above $65,000, buoyed by the easing of tensions between the US and Iran, but all eyes now turn to the Fed’s announcement at 9:00 PM Turkish time, followed by Chairman Kevin Warsh’s remarks at 9:30 PM.
In June, the Fed held rates steady between 5.25% and 5.50%, and the market expects a similar hold this time around, with a 66.3% chance of unchanged rates and a 33.7% possibility of a 25 basis point hike. Experts largely agree that no further rate increases are on the horizon this year, citing limited inflation pressures and prior tariff impacts already reflected in prices.
Mark Zandi, Chief Economist at Moody’s Analytics, supports this view, suggesting inflation has peaked and that future Fed moves will hinge on geopolitical developments, particularly the US-Iran dynamic. Zandi also noted that the new Fed Chairman Warsh plans to offer less forward guidance than his predecessor Jerome Powell, meaning markets will have to read between the lines for clues, potentially driving up volatility in bond yields.
Warsh’s terse communication style, marked by brief responses and avoidance of lengthy commentary, adds a layer of unpredictability that could unsettle investors. The crypto community is watching closely, aware that the Fed’s tone and outlook in this decision could influence Bitcoin and altcoin prices significantly.
