Bitcoin, Ether, XRP Fall as Fed Decision Nears

New York, July 31: Bitcoin and other major cryptocurrencies declined on Wednesday as investors watched two key developments unfold the U.S. Federal Reserve's interest-rate decision and a much-awaited crypto policy report from the White House.

According to CoinDesk, Bitcoin dropped 0.9% over the past 24 hours, trading around $117,807. Ether fell by 2%, XRP was down 2.5%, and Solana lost 3.4%. The market downturn comes despite a slight uptick in U.S. stock futures, with S&P 500 and Nasdaq futures gaining 0.1% and 0.2% respectively.

Why the Fed Matters

At 2 p.m. Eastern Time, the Federal Reserve is expected to announce whether it will raise or hold interest rates. Analysts largely believe the Fed will keep rates unchanged.

For crypto traders, interest rates are a major influence. “Lower rates make borrowing cheaper and increase risk appetite,” said Marcus Trager, a senior analyst at NYX Markets. “If the Fed signals future rate cuts, it could drive Bitcoin and other assets higher.”

Bigger Focus: Trump’s Bitcoin Reserve

Beyond the Fed, crypto investors are also watching the release of a new White House crypto policy report, ordered by President Donald Trump. The industry is hoping for clarity on how the U.S. government could begin acquiring Bitcoin under the Strategic Bitcoin Reserve, which was created via an executive order in March.

That executive order stated that Bitcoin confiscated in criminal or civil proceedings would be stored in the reserve. However, traders are hoping the U.S. might also become an active buyer in the open market — a move that could send crypto prices soaring.

“If the U.S. becomes a long-term holder of Bitcoin, that would be a huge confidence boost for the entire market,” said Lauren Chen, a crypto strategist at Nexa Capital.

Still, a White House official told Barron’s that the report is expected to provide a broad regulatory framework for the industry, not detailed plans about the reserve.

A Mixed Day for Crypto

The crypto market remains highly reactive to U.S. government policy. The combination of monetary signals and political interest in Bitcoin is creating a volatile environment.

While the market waits, some investors are repositioning. “We’re seeing defensive moves — people pulling back ahead of policy clarity,” said Trager.

Meanwhile, trading platforms report lower volumes, indicating that many retail investors are staying on the sidelines until clearer direction emerges.

Quick Reference: Crypto Update July 31, 2025