Investing.com– Bitcoin moved little on Thursday, remaining largely rangebound after the Federal Reserve’s reluctance to cut interest rates dulled risk appetite, with focus turning to an upcoming deadline for U.S. trade tariffs.
Broader crypto markets were rangebound following weak purchasing managers index data from China, as well as hawkish signals from the Bank of Japan, which weighed on risk appetite during the Asian session.
Bitcoin rose 0.4% to $118,503.1 by 01:03 ET (05:30 GMT). The world’s largest cryptocurrency remained largely rangebound below $120,000 after racing to record highs earlier in July.
Bitcoin took little support from major holder Strategy (formerly MicroStrategy Incorporated (NASDAQ:MSTR)) announcing the purchase of over 21,000 coins this week. A U.S.-South Korea trade deal also did little to spur risk appetite, as Washington slapped 25% tariffs on India.
Bitcoin steady after Fed holds rates
The world’s largest crypto showed a muted reaction to the Fed keeping interest rates unchanged on Wednesday.
The central bank flagged little intent to cut interest rates in the coming months, largely brushing off calls from President Donald Trump and his allies for lower rates.
The prospect of higher for longer U.S. interest rates bodes poorly for crypto markets, given that higher rates limit the appeal of speculative assets among investors. Bitcoin and crypto prices were battered by the Fed steadily raising interest rates through 2022 and 2023.
Broader risk-driven assets were also spooked by this prospect, with Wall Street retreating mildly on Wednesday.
But U.S. stock markets appeared to be primed for strong gains on Thursday, following strong earnings from tech giants Microsoft (NASDAQ:MSFT) and Meta (NASDAQ:META).
Focus is now squarely on Friday’s deadline for Trump’s trade tariffs to take effect. Key nonfarm payrolls data from the country is also on tap.
Crypto price today: altcoins tread water as caution persists
Broader crypto prices kept to a tight range on Thursday, with traders keeping away from big bets before Friday’s tariff deadline. Hawkish signals from the Fed and the BOJ also kept risk-driven markets on edge.
World no.2 crypto Ether rose 1.3% to $3,859.01, while XRP rose 0.5% to $3.1488.
Solana and Cardano moved little, while Polygon shed 0.4%.
Among meme tokens, Dogecoin was flat, while $TRUMP shed 0.5%.
