Hawkish Fed stance may cap BTC gains

Hawkish Fed stance may cap BTC gains The U.S. Federal Reserve held its benchmark interest rate steady on July 29, and its hawkish stance could weigh on BTC, CoinDesk analyzed. CoinDesk said the decision signaled the Fed is unwilling to tolerate inflation above target even at the risk of slower growth, a backdrop it described as the most unfavorable scenario for crypto in this cycle. It added tighter monetary policy could drain liquidity and raise the cost of maintaining crypto positions that rely on leverage and carry-trade funding, putting downward pressure on BTC prices. The outlet also said institutional investors would likely move quickly to build defensive positions, with risk assets facing the biggest hit, and noted BTC has remained relatively resilient in a hawkish environment so far but could come under negative price pressure if a new hawkish shock emerges.