Bitcoin sees caution ahead of Fed and policy announcements

28 July 2025

Today’s markets analysis on behalf of Konstantinos Chrysikos Head of Customer Relationship Management at Kudotrade

Bitcoin continued to trade sideways overall and remains below its latest high. The US-EU trade agreement, announced during the weekend, could support prices to a certain extent as it eased tariff concerns and lifted risk appetite. Yet, the market could continue to see some caution after bouncing off a new high and could record some volatility within its current range.

Market participants could remain vigilant ahead of this week’s Federal Reserve meeting. Market focus will shift to the tone of the Fed’s guidance. A dovish outlook, hinting at potential easing later in the year, could enhance demand for risk assets, including Bitcoin. Conversely, a more hawkish stance could affect risk appetite.

Institutional engagement via Bitcoin ETFs improved after a period of outflows, which could support prices. Meanwhile, a US crypto policy report, due at the end of the month, could provide more regulatory clarity around the asset class. Greater transparency could strengthen institutional confidence and support market stability.

 

Zaid Barem / ymm