Bitcoin stayed locked beneath the $118,000 threshold today as traders played it safe ahead of the U.S. Federal Reserve’s policy decision — www.naijnaira.com reports.
According to CoinDesk, over $111 million in long bets were wiped out across the crypto market in just 12 hours, reflecting the broader mood of caution.
Bitcoin and other major tokens saw red across the board, pushing the total crypto market cap down by more than 5% to $3.92 trillion.
Despite market softness, sentiment slightly improved, with the Crypto Fear and Greed Index ticking up to 74 following positive diplomatic talks between the U.S. and China in Stockholm.
However, that small mood boost failed to lift altcoin prices, as traders continued to avoid risky bets ahead of the Fed’s update.
Uncertainty over the central bank’s rate stance has left Bitcoin stuck, with strong U.S. economic data this week complicating the Fed’s messaging.
ADP reported a better-than-expected 104,000 new jobs in July, and Q2 GDP rebounded 3%, after a contraction earlier this year.
These numbers suggest inflationary pressure could persist, which may keep the Fed’s tone hawkish even if rates remain unchanged.
President Trump’s calls for lower rates add more pressure, but traders now expect Powell to hold the line without promising cuts.
Bitcoin futures open interest fell from $50.58B to $49.58B, with TRDR tracking the steep pullback in leveraged positions.
Coinglass data showed $111.97 million in liquidated long positions as risk appetite shrinks.
On the global front, Trump’s 25% tariff on Indian imports, starting August 1, stirred fresh concerns of trade retaliation.
Similar threats toward Brazil, South Korea, and South Africa added to the market’s cautious tone.
Crypto watchers are also anticipating a White House report on Bitcoin holdings, which may clarify U.S. crypto strategy.
There’s chatter about Trump backing a government-owned Bitcoin reserve, but nothing concrete has surfaced yet.
Until there’s clarity, Bitcoin remains in limbo, bouncing between $114K and $118K with little conviction either way.
Today’s Fed announcement and Powell’s remarks are likely to steer Bitcoin’s short-term direction.
Traders are keen to hear whether Powell hints at future cuts or sticks to a data-focused approach.
Crypto figure TedPillows described yesterday’s market action as “pure panic selling” ahead of the meeting.
“People likely dumped their bags in fear,” he posted, suggesting a rebound could follow once the dust settles.
Many expect a similar post-Fed rally pattern, as sidelined traders rush back in after clarity returns.
Eyes are also on Friday’s U.S. jobs report and escalating global tariffs, both potential volatility triggers.
Technically, $120,000 remains a ceiling for BTC, while analysts see $141,000 as the next major bullish target.
This level, flagged by Glassnode, could prompt profit-taking if reached.
Another resistance to watch is $125,000, linked to short-term holder behavior.
On the flip side, Bitcoin has support between $114K and $116K, with some expecting a brief dip to $112K before bouncing.
Killa, a market analyst, believes BTC could test $105,400 or even $93,000 if volatility intensifies.
Pseudonymous analyst Henry remains unfazed, calling the current action part of a classic bullish pennant.
He believes the shakeout is a typical pre-breakout phase, with strong upside potential once weak hands exit.
As of this writing, BTC trades just above $118,100, barely moving in the past 24 hours.
Altcoins briefly gained ground, with total altcoin market cap touching $1.6T before settling at $1.56T.
Sygnum Bank’s Q3 report noted that a potential “altseason” might be underway, citing better regulation and stronger liquidity.
They believe the market may rotate into tokens with utility and solid tokenomics as investor preferences shift.
Sygnum also pointed out Bitcoin dominance is slipping, while Ethereum has gained 3.2% since June.
But the bank warned of a possible memecoin bubble if speculation returns unchecked.
Ethereum rose slightly to $3,788, while XRP gained 1.4%; Solana, Dogecoin, Tron, and Cardano all slipped between 1% and 3%.
Among all tokens, FORM — tied to the Four meme coin platform — was the day’s standout with a 16% surge.
XDC and Story each added 4.6%, rounding out the top-performing coins of the day.
Article updated 3 weeks ago. Content is written and modified by multiple authors.
