Bitcoin price today: edges lower as risk appetite drifts ahead of Fed decision

Investing.com--Bitcoin pulled back slightly on Wednesday, extending losses from earlier this week as traders remained largely risk-averse ahead of a Federal Reserve interest rate decision and an August 1 deadline for President Donald Trump’s tariffs.

At 09:44 ET (13:44 GMT), Bitcoin slid 0.7% to 117,840, having largely tread water after reaching record highs above $123,000 in mid-July. 

Fed, tariff caution quash Bitcoin 

Risk appetite has been curtailed Wednesday, with markets were largely on edge before the conclusion of the Fed’s policy meeting later in the session.

The central bank is widely expected to leave interest rates unchanged, despite growing demands from Trump and his allies for lower rates. 

But some analysts see the Fed flagging a less hawkish outlook, especially amid concerns over the impact of Trump’s tariffs, as well as cracks in the labor market.

Still, uncertainty over the Fed’s outlook kept traders largely risk-averse, with Bitcoin also clocking only limited gains on the signing of a trade deal between the U.S. and the European Union. 

While the EU trade deal does present some progress in Trump’s trade overhaul, it still leaves several major global economies facing steep U.S. tariffs from Friday, August 1. Trump has signaled little intent to extend this deadline, which will see the imposition of tariffs between 15% and 50% on major global economies.

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

Strategy raises $2.5B from share issuance, buys 21,021 Bitcoin

Michael Saylor’s Strategy said on Tuesday it had raised nearly $2.5 billion from a recent preferred share issuance.

Strategy said the funds were deployed towards purchasing about 21,021 Bitcoin at an average purchase price of $117,256 per Bitcoin, bringing its overall holdings to 628,791 coins. 

Kraken seen raising $500M at $15B valuation - The Information

Kraken, the 14th-largest crypto exchange in the world by daily volume, is seeking to raise $500 million at a $15 billion valuation, The Information reported on Tuesday. 

The raise comes amid similar moves by several of Kraken’s peers, as they capitalize on the resurgent popularity of crypto among institutional investors. This notion, coupled with optimism over more pro-crypto policies under Trump, was a key driver of Bitcoin’s rally so far in 2025. 

Altcoins lower tracking Bitcoin

Broader crypto prices largely retreated in tandem with Bitcoin, also seeing some profit-taking after a strong run-up in July.

World no. crypto Ether fell 2.3% to $3,764.70, XRP dropped also 2.3% to $3.08, Solana shed 4% and Cardano fell over 5%. 

Among meme tokens, Dogecoin fell 5.3% and $TRUMP fell 4.8%.

Ambar Warrick and Vahid Karaahmetovic contributed to this article.