Bitcoin tumbled to a two-week low below $62,500 after the Federal Reserve and Bank of Japan both kept interest rates unchanged, capping a week that saw the asset swing from a rally above $67,000 to a sharp rejection. The moves came as traders digested better-than-expected US CPI data early in the week, which briefly pushed Bitcoin to $67,000 before the Fed's hold triggered a pullback. The Bank of Japan's follow-up decision to maintain rates then sealed the slide, with Bitcoin closing the week around $64,000 before slipping further.
Rate decisions rattle markets
The week started with a bang. US CPI came in better than expected, and Bitcoin shot to $67,000. But the Federal Reserve's decision to hold rates steady brought the rally to a halt, with Bitcoin challenging $65,500 before retreating. Then the Bank of Japan matched the Fed's stance, and Bitcoin got rejected hard, sliding below $62,500. Altcoins took an even bigger hit. RAIN plummeted by double digits. ZEC, XLM, and HYPE all dropped up to 8%. The broader crypto market cap now sits at $2.275 trillion, with 24-hour volume of $60 billion and Bitcoin dominance at 55.3%.
New York sues Kalshi over alleged illegal gambling
New York Governor Kathy Hochul and Attorney General Leticia James filed a lawsuit against Kalshi, the prediction market platform, alleging it operates illegal gambling products without a license. The suit is the latest state-level action against event contracts, which regulators have increasingly targeted as unlicensed gaming. Kalshi has not yet publicly responded to the allegations.
Ethereum turns 11, Circle bulks up on patents
Ethereum celebrated its 11th birthday on July 30. The milestone comes with the asset trading 61% below its all-time high set last August. In a separate move, Circle expanded its blockchain patent portfolio by purchasing nearly 1,000 patents from IBM. The patents cover core blockchain technology, banking, financial services, and insurance — a bet that could strengthen Circle's position in the stablecoin market.
MicroStrategy pauses for a fifth week
MicroStrategy, now rebranded as Strategy, paused Bitcoin purchases for a fifth consecutive week. Instead, the company built its USD reserve to $3.75 billion — enough to cover 2.1 years of dividend payments. The pause suggests the firm is prioritizing cash over additional Bitcoin accumulation, at least for now.
Looking ahead, one analyst claimed Bitcoin's next bull run could follow the US midterm elections, while another predicted a peak of around $400,000 within two years. Whether those timelines hold is anyone's guess, but the macro picture this week made one thing clear: rate decisions still move markets.
