BOSS Wallet reported on July 31st that the U.S. Federal Reserve (Fed) announced it would maintain the federal funds rate at 4.25%-4.50%, in line with market expectations. XBIT stated that due to persistent inflation data and disagreements within the Fed regarding rate cuts, market sentiment has become cautious, leading to slight fluctuations in the cryptocurrency market.

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   Bitcoin (BTC) recently traded at $117,777, down 0.1% over the past hour and about 4% from its all-time high of $123,000 two weeks ago. Ethereum (ETH), the second-largest cryptocurrency by market capitalization, performed relatively strongly, trading at $3,809, up 0.4% from the previous day, and has consistently outperformed Bitcoin and other major crypto assets over the past three months. Analysts at XBIT (DEX Exchange) noted that the Federal Reserve's cautious stance suggests a low probability of a rate cut in the near term, which could lead some speculative funds to withdraw from the crypto market and shift to more stable traditional assets.
   Despite the Federal Reserve Chair's adherence to a "data-driven" policy stance, divisions have emerged within the Board of Governors. Two governors and the new vice chairman for supervision have recently publicly supported a rate cut, arguing that inflationary pressures may be easing. However, Powell remains cautious, emphasizing the need for more data to support a rate cut.
   US President Trump continues to pressure the Federal Reserve to lower interest rates to stimulate the economy. Trump recently visited the Fed and publicly criticized Powell's monetary policy, even hinting that he might consider firing him. XBIT (DEX Exchange) analysts pointed out that Trump's tariff policies have led to stubbornly high inflation. The June Consumer Price Index (CPI) showed US GDP growing by 0.3% month-over-month, reaching an annualized rate of 2.7%, far exceeding the Federal Reserve's 2% target.
   BOSS Wallet reported that the cryptocurrency market is generally in a wait-and-see mode as investors weigh inflation, the trade war, and macroeconomic uncertainty. While Ethereum has performed relatively resiliently, Bitcoin's price is still experiencing a slight decline, influenced by the Fed's policies. XBIT (DEX Exchange) analysts stated that the market has largely priced in the Fed maintaining interest rates. The real focus lies on Powell's remarks at the press conference and the possibility of future rate cuts. If Powell suggests that inflation is easing, risk assets (including cryptocurrencies) may rally; however, if he sends a more hawkish signal, the market may experience a correction.

Twitter : @XBITDEX

   Comparing the performance of Bitcoin and Ethereum, Ethereum (ETH) has consistently outperformed the broader market over the past three months, demonstrating strong market resilience. This trend may be attributed to the continued development of the Ethereum ecosystem, including the popularity of Layer 2 solutions and the recovery of the DeFi market. In contrast, Bitcoin, as the largest cryptocurrency by market capitalization, remains significantly influenced by macroeconomic factors. XBIT data shows that Bitcoin trading volume has declined by approximately 15% over the past week, while trading volume for Ethereum and related altcoins has remained relatively stable.
   Along with the Federal Reserve's announcement, the White House released a 166-page crypto policy report titled "Strengthening U.S. Leadership in Digital Financial Technologies." The report proposes several recommendations, including
Supporting self-hosted wallet rights, allowing users to transfer and store crypto assets without an intermediary;
Prohibiting the Federal Reserve from issuing CBDCs (central bank digital currencies) to protect the decentralized financial system;
Giving the CFTC (Commodity Futures Trading Commission) clear authority to regulate spot markets to promote regulatory compliance in the crypto market;
Encouraging the development of U.S. dollar stablecoins and adjusting tax laws to accommodate digital asset transactions.
   The report did not mention the amount of Bitcoin currently held by the US government, nor did it clarify whether it would directly decrypt the cryptocurrency, leading to a muted market reaction. Traders at XBIT (DEX Exchange) stated that the report focused more on a policy framework than specific market stimulus measures and therefore had limited direct impact on the crypto market. Following the report's release, Bitcoin prices plummeted from a 24-hour high of $118,742 to $115,521, remaining around $116,558 at press time.
   According to data from the BOSS Wallet app, in the short term, Bitcoin's price movements will continue to be influenced by Federal Reserve policy, inflation data, and the global macroeconomic environment. While altcoins like Ethereum have performed relatively strongly, Bitcoin, as the largest cryptocurrency by market capitalization, continues to dominate market sentiment due to its price fluctuations. Analysts at XBIT (DEX Exchange) believe that if inflation data declines in the coming months, the Federal Reserve may signal an interest rate cut, potentially triggering a new round of gains in the cryptocurrency market. However, if the trade war escalates or geopolitical risks intensify, risk aversion could again push up the US dollar, suppressing the performance of crypto assets.

Twitter : @XBITDEX

   Investors should closely monitor Federal Reserve policy trends and macroeconomic data to gauge the crypto market's future trends. Amidst continued macroeconomic uncertainty, crypto market volatility is likely to continue to intensify. The XBIT.Exchange decentralized trading platform offers investors a more convenient way to manage their assets, with no KYC requirements, no lockdowns, no audits, and self-custody of private keys (control is entirely theirs). This allows investors to more quickly adjust their portfolios or liquidate assets without worrying about accessing cold storage. Custodial platforms often partner with multiple exchanges and financial institutions to ensure asset liquidity and enable fast trade execution when needed. XBIT remains committed to providing users with a secure and efficient trading environment and helping investors seize market opportunities through professional market analysis.