The Federal Reserve held its benchmark interest rate steady at 3.50% to 3.75% on July 29, but the 9-3 vote was anything but unanimous. Three Fed presidents — Beth Hammack, Neel Kashkari and Lorie Logan — dissented in favor of a 25 basis point hike, marking the first three-dissent vote since 2016. Bitcoin initially jumped from $63,700 to nearly $64,700 after the decision, then gave back those gains and settled around $64,000.
Three dissents, a hawkish hold
Policymakers cited persistent inflation running around 4.1% and resilient economic growth as reasons for keeping rates elevated. The three dissidents wanted a hike, but the majority held firm. The decision comes as US publicly held debt surpassed 100% of GDP for the first time since World War II — a fiscal backdrop that complicates any future rate moves.
Liquidations hit both sides
The rate decision triggered heavy liquidations across crypto derivatives. Between $280 million and $316 million in positions were wiped out, affecting 90,000 to 96,000 traders. Both long and short positions got caught in the volatility. Bitcoin had recovered from weekly lows near $62,400 before the announcement and managed to defend the $64,000 level with support above $63,500. Still, the asset remains roughly 3% to 4% below recent highs near $66,000 as July consolidation continues.
ETF flows diverge
Spot Bitcoin ETFs recorded $32.1 million in net inflows on July 29, led by IBIT, ending a multi-day outflow streak. Ethereum ETFs went the other way, posting about $18.65 million in net outflows the same day. Solana ETFs attracted roughly $19 million in net inflows, and XRP products added about $0.58 million. The split shows investors still favoring Bitcoin and Solana over Ethereum in the current environment.
Quick hits: Lummis hack, Ostium breach, Luno cuts
Senator Cynthia Lummis' verified X account was briefly hacked to promote a fake Solana meme coin called $USA Token via pump.fun. The posts were removed quickly. Ostium disclosed a $24 million off-chain breach, confirming its smart contracts remained uncompromised. Hyperliquid welcomed its first Japanese corporate buyer despite reports of reduced US fund exposure. Luno announced another round of job cuts as part of industry restructuring. Meanwhile, the CLARITY Act negotiations continued ahead of the August recess, with ethics provisions and crypto-related amendments still under debate.
