Crypto Investors on Edge Ahead of August as Bitcoin Slips

The world’s largest cryptocurrency fell 0.8% to $117,911.3 (as of 01:32 ET / 05:32 GMT). After reaching a record high above $123,000 in mid-July, it has been trading largely within a limited range.

Although Bitcoin was headed for strong gains in July, its recent rally also left it open to profit-taking. The crypto received no significant support from its top corporate holder, MicroStrategy (NASDAQ:MSTR) (referred to as Strategy in the previous article), which had raised $2.5 billion in capital to purchase approximately 21,021 bitcoins.

Fed and Tariff Concerns Halt Bitcoin and Crypto
Markets were largely on edge before the conclusion of the Fed’s meeting on Wednesday.

Despite growing demands from Trump and his allies for lower rates, it is widely expected that the central bank will keep interest rates unchanged.

However, some analysts believe the Fed could signal a less aggressive stance, especially amid concerns about the impact of Trump’s tariffs and visible cracks in the labor market.

Nevertheless, uncertainty over the Fed’s outlook forced traders to largely avoid risk, and Bitcoin registered only limited gains despite the signing of a trade deal between the U.S. and the European Union.

While the trade deal with the EU represents some progress in Trump’s trade overhaul, it still leaves several major global economies facing heavy U.S. tariffs from Friday, August 1. Trump has shown no intention of extending this deadline, after which tariffs between 15% and 50% will be imposed on major global economies.

Although interest rates and tariffs do not directly affect crypto, they impact market sentiment, which in turn affects speculative assets.

MicroStrategy Raises $2.5 Billion Through Share Issuance, Buys 21,021 Bitcoin
Michael Saylor’s company, MicroStrategy, said on Tuesday that it had recently raised approximately $2.5 billion by issuing preferred shares.

MicroStrategy stated that these funds were used to purchase approximately 21,021 bitcoins at an average purchase price of $117,256 per bitcoin. With this, the company’s total holdings have reached 628,791 coins.

Kraken to Raise $500 Million at a $15 Billion Valuation – The Information
The Information reported on Tuesday evening that Kraken, the world’s 14th-largest crypto exchange by daily volume, is attempting to raise $500 million at a $15 billion valuation.

This move comes amidst similar steps taken by several of Kraken’s competitors, as they capitalize on the renewed popularity of crypto among institutional investors. This sentiment, combined with optimism for more pro-crypto policies under Trump, has been a key driver of Bitcoin’s rally so far in 2025.

Today’s Crypto Prices: Altcoins Decline Along with Bitcoin
Broader crypto prices also retreated along with Bitcoin, and some profit-taking was seen in them as well after a strong rally in July.

The world’s number two crypto, Ether, stabilized at $3,807.44, while XRP fell 0.6% to $3.1290.

Solana saw a 2.1% decline, while Cardano fell 1.6%.

Among meme tokens, Dogecoin fell 2.2%, while $TRUMP dropped by 2.6%.

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