Bitcoin remains resilient just above US$118,000 after the US Federal Reserve opted to leave interest rates unchanged, sending warning signals to global markets. The traders are also watching for the US tariffs set to take effect on August 1, offering another macroeconomic hazard.
In the backdrop of risk, Bitcoin’s resilience continues to surprise. Ethereum has also remained resilient, trading a lot above US$3,800. The two leading cryptocurrencies appear to be far ahead of withstanding the macro headwinds best of the rest of the peers on the basis of institutional buying and structural optimism.
Bitcoin steady at $118K amid Fed pause, tariff watch ( Image Source: CoinDesk )
Fed Keeps Rates Unchanged: What Crypto Is Communicating
As widely expected, the US Federal Reserve kept their benchmark rate at 4.25%–4.50%. The action didn’t look so great on direction-following investors, however. Fed Chair Jerome Powell’s words were tame, particularly in describing inflation risks that would be fanned by potential future tariffs.
Powell went on to say trade restraint inflationary pressures “may only be beginning” and cast a long shadow over already volatile markets. To crypto markets, this relief from short-term rate increases is not necessarily bullish, it’s wait-and-see depending on future heightened sensitivity to policy signals.
What a day. The Fed held rates unchanged as expected. Bitcoin survived a retest of $115K and $BTC closed at $117.4K. $ETH closed at $3.7K. $SOL closed at $176. That’s reasonably good news.
In the first double dissension since 1932, the Fed voted to leave rates unchanged.… pic.twitter.com/BfyQbjUxb1
— Daves_Metaverse SPX6900 (@Davids_Sarcasm) July 31, 2025
Institutions Bolster Ethereum’s Base
Institutions have voted a massive confidence in Ethereum. US tech firm SharpLink Gaming recently purchased 10,000 ETH outright from the Ethereum Foundation for over US$25.7 million. Since then, it has reportedly added some more funds to its coffers, a massive vote of confidence in ETH’s long-term value.
These are not headlines in news reports, but they signal institutional treasuries are going out of their way to invest directly into Ethereum by employing levers such as staking to create yield. Not only is it evidence of having high conviction within the ecosystem but it constricts supply to stabilize the price.
Altcoins Lag as Market Cap Slips
While Bitcoin and Ethereum are holding their ground, the broader crypto space is retreating. The total market capitalization has fallen by around 3.8% after a risk-off sentiment. Traders are observed to be exiting leveraged altcoins in favor of stable and proven assets.
Tokens like BONK, SUI, and AVAX declined more drastically, demonstrating the risk-off attitude in the marketplace. This reversal has the effect of emphasizing the heightened divergence among blue-chip crypto and the rest of the ecosystem as macroeconomic pressure grows.
Why This Stability Matters
Bitcoin and Ethereum’s stability now is not a question of price behavior, it is an indication of greater maturity in the way these instruments respond to economic trends globally. Rather than panicking, the market is showing signs of consolidation and subdued confidence.
Bitcoin’s institutional demand support level of US$118K is indicative of demand-side institutional interest, and Ethereum’s adoption by corporate treasuries is a sign of greater use case adoption beyond trading. These are positive signs for the long-term investor and indicative of strength in the face of external economic tensions.
What Traders Should Be Watching
A number of factors will be at the center of the next moves in crypto prices. Most pressing is the US tariff regime going live on August 1. Surprises or hikes in such measures can generate new turbulence in financial markets, and consequently, crypto.
In addition, they are holding out for additional cues from the Fed. Having no idea what is coming on rate cuts, as well as uncertainty surrounding inflation and trade, leaves traders exposed. For the moment, Bitcoin and Ethereum are the oasis in the desert, but that oasis can easily be swept away at any given moment.
Final Thoughts
Recent calmness in Bitcoin and Ethereum is reflecting a saner-growing market despite macro headwinds. Even though Fed repo stops and future tariffs have been causing uncertainty regarding the near term, institutional support for major cryptos is providing much-needed stability.
As the next crucial market drivers are only a few days off, everyone’s paying attention to how crypto prices respond to any sign of volatility or policy change. That Bitcoin is holding the $118K line at bay for now alone speaks volumes.
