Bitcoin Bounces Back Strongly Post-FED-Related Fall

Bitcoin prices took a sharp hit following remarks by Jerome Powell, the Federal Reserve Chairman, impacting the market significantly.

Written by Simon Dumoulin

Translated on July 31, 2025 at 13:27 by Marie

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Bitcoin Price Drops Following Jerome Powell’s Statements

The Bitcoin price experienced a sharp reaction following Federal Reserve Chairman Jerome Powell’s speech after the interest rate decision. Powell effectively ruled out any rate cuts, which triggered a decline in Bitcoin, as well as stocks and gold.

According to the Fed chairman, the US economy remains too robust to justify an interest rate cut. He particularly highlighted uncertainties related to the impact of tariffs imposed by the Trump administration. Markets, which had expected a more accommodative stance from the Fed, were therefore surprised and reacted accordingly.

POWELL: TARIFFS HAVE EXERTED PRESSURE ON SOME GOODS BUT WIDER IMPACT UNCERTAIN

Powell is still floating uncertainty around inflation the from tariffs
— Market Radar (@themarketradar) July 30, 2025

Bitcoin’s Quick Recovery

Although Bitcoin initially dropped following these announcements, it’s already rebounding. This is because the macroeconomic context remains highly favorable for the flagship cryptocurrency. Several elements are supporting its price :

Investors’ risk appetite continues to increase in financial markets. They are increasingly moving toward more volatile assets, such as Bitcoin.
The trade agreements recently concluded by the Trump administration with Japan and the European Union help to ease tensions and boost positive market sentiment.
The “One Big Beautiful Bill” fiscal stimulus plan deployed by the US government is beginning to show its effects.
US companies have reported solid earnings, strengthening investor confidence.
Economic indicators in the US have remained positive this week.

Most importantly, investors are anticipating Jerome Powell’s replacement as Fed chair in 2026 by a chairman more aligned with Donald Trump’s positions, and therefore more inclined to cut rates. This should provide powerful support for Bitcoin in the medium term.

While you were worrying about the Fed, Bitcoin Treasury Companies just had one of their biggest buying days ever yesterday. pic.twitter.com/ajj2T9PTYR
— Charles Edwards (@caprioleio) July 31, 2025

Buy BTC on Bitget now !

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Simon Dumoulin

Passionate about cryptocurrencies since 2019, I cover the latest news through clear and accessible articles. My goal is to make crypto understandable for everyone, with reliable and well-researched content.

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