Crypto Market Hovers Near $4T as Fed Uncertainty, Stalled Momentum Keep Bulls in Check
The cryptocurrency market remains just shy of the $4 trillion milestone, held back by stalled momentum and investor caution ahead of the Federal Reserve’s next policy meeting.
Total crypto market capitalization hovered around $3.93 trillion on Wednesday, marking the third failed attempt in under a month to break through the closely watched threshold. Despite a backdrop of risk-on sentiment in equities, surging demand for Ethereum, and renewed excitement over altcoin-focused ETFs, the crypto market appears to be in a holding pattern.
“Markets are exhibiting a clear rhythm — strong inflows at the start of the month, followed by end-of-month consolidation,” said Alex Kuptsikevich, chief market analyst at FxPro. “Right now, traders are rotating capital between majors while waiting for the next major catalyst.”
Bitcoin Rangebound, Ether Cools After Rally
Bitcoin (BTC) remained confined to a narrow trading band between $117,000 and $119,000 over the past 24 hours, changing hands near $118,500 in early U.S. trading. Despite a 0.5% gain over the past week, a slowdown in derivatives volumes and softening funding rates suggest fading momentum.
Ethereum (ETH), which surged 22% last week, also appears to be losing steam. The asset traded around $3,670 on Wednesday, with both staking flows and ETF-driven demand showing signs of cooling following a rapid, five-day rally.
BNB Pops, But Altcoin Surge Stalls
BNB (BNB) broke above $800 midweek, posting fresh local highs, while ecosystem tokens like PancakeSwap (CAKE) and Floki (FLOKI) rose as much as 10%. However, broader altcoin performance was mixed.
Solana (SOL), up over 18% on the week, dipped 1.3% on the day. Meanwhile, previous outperformers like Cardano (ADA) and XRP, which gained 14.9% and 17.1% respectively over the past seven days, have flattened out. Even Dogecoin (DOGE), last week’s surprise mover on ETF speculation and bullish mining news, began to retreat after a 27% rally.
Despite the pause, sentiment remains upbeat. The Crypto Fear & Greed Index rose to 74—just below the “extreme greed” mark of 75, which often signals overheated market conditions.
“There’s still strong optimism, but markets need a new catalyst to push into ‘extreme greed’ territory,” Kuptsikevich said. “A potential driver could be ETF approvals involving staking, or the inclusion of more altcoins in exchange-traded products.”
Fed Meeting Looms as Rate Cut Hopes Fade
The Federal Reserve is set to meet on July 30 under mounting political pressure. President Trump and some appointees have publicly urged rate cuts despite inflationary concerns.
While Chair Jerome Powell is expected to keep rates unchanged, divisions within the Fed’s policymaking committee are beginning to worry economists. A recent Reuters survey found that over 70% of economists are concerned about the Fed’s political independence.
Markets now price in a 53% chance of a rate cut in September. With tariff-related deadlines on August 1 approaching, crypto investors are watching closely for any dovish signals that could ignite the next wave of inflows.
