Trading Below $65K as Fed Rate Cut Talk Ignites Stock Rally

Bitcoin’s price experienced a decline on Thursday, continuing a recent trend despite a rally on Wall Street following indications from the Federal Reserve about the potential for an interest rate cut in September.

Investor sentiment in the cryptocurrency market remains cautious, largely due to concerns over a possible liquidation of approximately $2 billion in Bitcoin by the U.S. government, which was initiated earlier this week.

Additionally, a lift from pro-crypto statements made by Republican presidential candidate Donald Trump appears to have waned after a recent poll indicated that Democratic frontrunner Kamala Harris has surpassed Trump in several key battleground states. As a result, Bitcoin fell 2% over the previous 24 hours, trading at around $64,782.80.

### Fed Signals Possible Rate Cuts, Bitcoin Remains Unresponsive

The Federal Reserve maintained its interest rates in the expected range on Wednesday, with Chair Jerome Powell indicating that there has been progress in addressing inflation and a cooling labor market. Powell pointed out the possibility of a rate reduction in September, contingent on forthcoming economic data. His remarks prompted a notable surge in stock market indices.

Despite the positive sentiment stemming from the Fed and encouraging earnings reports from the technology sector, many traders remained focused on equities rather than cryptocurrencies, even though lower U.S. interest rates typically create a favorable environment for digital assets due to increased liquidity.

Globally, however, risk appetite was subdued. Japanese markets suffered a downturn following the Bank of Japan’s decision to signal potential interest rate increases in response to the resilience of the Japanese economy. This caused a notable rise in the yen against other currencies. Additionally, heightened geopolitical tensions in the Middle East, following the assassination of a Hamas leader in Iran, further dampened overall market sentiments.

### Large Bitcoin Holders Boost Their Holdings in July

In July, significant Bitcoin holders increased their stakes at the fastest rate seen since October 2014, demonstrating a strong confidence in the asset amid market volatility. These large holders, defined as addresses containing at least 0.1% of Bitcoin’s circulating supply, accumulated more than 84,000 BTC, valued at approximately $5.4 billion at current market prices, according to recent analytics.

The accumulation trend was primarily driven by opportunistic buying during early July when prices dipped below $55,000, with continued buying through the price recovery toward $69,000. By the end of July, Bitcoin had recorded a 3% growth, indicating a belief among holders that ongoing price consolidation between $50,000 and $70,000 will lead to a significant bullish breakout.

Moreover, analysts are increasingly optimistic about Bitcoin’s future pricing. Following the Fed’s statements on Wednesday regarding potential interest rate cuts, ING analysts suggested that the central bank might begin shifting monetary policy towards a less restrictive stance, depending on forthcoming economic data, with expectations for cuts possibly in November and December.

### Current Crypto Market Update: Altcoins Decline as XRP Rally Stalls

In the broader cryptocurrency market, declines in Bitcoin were mirrored by other assets, notably XRP, which saw a 5.7% drop after experiencing a rally fueled by unverified rumors regarding a potential settlement between the company behind XRP and the Securities and Exchange Commission.

The second-largest cryptocurrency by market capitalization also slipped, falling 3.6% to approximately $3,196.25 per ounce, with other notable cryptocurrencies, including Ethereum and Litecoin, experiencing decreases of 6% and 2.5%, respectively. Among meme tokens, there was a decline of 3.9%.