Cooling markets as Fed rate decision and crypto report could set the tone for August
🔍 RSI indicates market cooldown - Bitcoin's Relative Strength Index (RSI) has dipped to 35, just above the oversold threshold of 30.
📉 Bitcoin drops below $116K - BTC is down over 2% overnight, trading around $115,200, while others like Solana are seeing steeper declines amid a broader cooldown.
🦅 US crypto policy report incoming - A major US government report on crypto is due 30 July.
🏦 Fed decision could set August tone - The Fed is expected to hold rates steady, despite pressure from Trump.
The Bitcoin Relative Strength Index (RSI) gives a clear picture this morning of the short-term reversal in markets following July’s rally. The RSI, a widely watched sentiment tracker, is sitting at 35 this morning. It’s not a crystal ball for future price moves by any means, but a level of 30 is considered oversold and may signal selling exhaustion, while 70 typically indicates overbought conditions and incoming selling pressure.
Bitcoin (BTC) is down more than 2% overnight, trading around $115,200 at the time of writing. Solana (SOL) and other altcoins have posted deeper losses. Ethereum remains in the green but is moving more steadily as the broader market cools.
Looking ahead, investors are keeping an eye on a US government crypto report due 30 July, the same day as the Federal Reserve’s next interest rate decision. The crypto report is expected to offer more insight into national crypto policy, including the US government’s potential plan for a Bitcoin strategic reserve.
As for monetary policy, the Fed is widely expected to hold rates steady until at least September, despite calls from President Trump to cut rates and ease debt servicing costs. With inflation and employment still guiding its policy, the Fed’s comments, combined with the crypto report, could shape market momentum heading into August.
In the markets…
🌍 Total crypto market cap ↘️
The global crypto market cap is approximately $3.79 trillion, down 1.65% over the past 24 hours.
🟠 Bitcoin (BTC) ↘️
Price: $115,926, down 2.66% in the last 24 h
Daily high: $119,415
Daily low: $115,141
📈 S&P 500 ↗️
SPY is currently up about 0.07% since yesterday’s close.
🥳 Fear & Greed Index
The Crypto Fear & Greed Index stands at 66/100, indicating Greed among investors.
📊 Bitcoin Relative Strength Index (RSI) (14)
The 14-day RSI for BTC is approximately 35, in neutral territory.
Data is accurate as at 08:I 24 GMT, 25 July.
Cautionary Notes
It's definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. The Digital Commonwealth always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.
