Bitcoin Price Nears $119,000 Amid Trade Optimism; Eyes on Federal Reserve and Upcoming Crypto Policy Report
July 28, 2025 – Investing.com
Bitcoin hovered close to the $119,000 mark on Monday following a modest rebound from recent two-week lows seen over the weekend. The cryptocurrency’s renewed momentum comes as investor sentiment improves, fueled by optimism surrounding a newly announced U.S.–European Union trade agreement. However, Bitcoin remains confined to a narrow trading range as market participants await key policy events later this week, including the Federal Reserve’s interest rate decision and a critical U.S. crypto strategy report scheduled for July 30. ### Bitcoin Performance and Market Sentiment
As of 9:17 a.m. Eastern Time (1:17 p.m. GMT), Bitcoin was trading at approximately $118,850, marking an increase of about 0.5%. While Bitcoin showed cautious gains, other major cryptocurrencies experienced more pronounced advances. Ethereum (ETH), in particular, surged to a seven-week high, reflecting growing confidence in the broader crypto market.
The recent strengthening of Bitcoin followed the announcement of a trade deal between the U.S. and the EU, which lowered threatened tariffs on European imports from 30% to 15%. This agreement also entails the EU’s commitment to purchase $750 billion worth of U.S. energy and significant investments in arms and infrastructure. These developments eased trade-related political risks and uncertainties, encouraging investors to shift from traditional safe havens to riskier assets — including equities and cryptocurrencies such as Bitcoin.
Federal Reserve Meeting and Crypto Policy Report in Focus
The spotlight now shifts toward the Federal Reserve’s two-day policy meeting concluding on Wednesday. The central bank is widely expected to keep its benchmark interest rate steady at the current 4.25%–4.50% range. However, all eyes will be on the Federal Reserve’s forward guidance regarding potential rate cuts later in 2025. A dovish stance by the Fed could bolster Bitcoin by lowering the appeal of low-yield safe investments.
Equally important for the cryptocurrency space is the anticipated release of a U.S. crypto policy report on July 30. Market watchers expect the report to clarify regulatory frameworks and outline strategies, including the possibility of establishing a strategic Bitcoin reserve. Clear regulatory guidelines could enhance institutional confidence and potentially encourage greater participation in crypto markets.
Crypto Investment Flows and Altcoins Update
According to CoinShares data, crypto investment products attracted $1.9 billion in inflows last week, marking the fifteenth consecutive week of positive net investments. July has thus far set a record with $11.2 billion in inflows — surpassing the previous monthly high of $7.6 billion recorded after the U.S. election in December 2024. Ethereum led these inflows for the second straight week, drawing $1.59 billion and pushing its year-to-date total inflows to $7.79 billion, already exceeding the total for 2024. Contrastingly, Bitcoin funds experienced $175 million in outflows despite the cryptocurrency’s solid performance. Nevertheless, Bitcoin-related products still lead in both monthly and year-to-date investment flows.
Among other altcoins, price changes were modest following the weekend rally. Ethereum climbed roughly 1% to $3,857, its highest level since mid-December 2024. Solana gained 2.5%, Cardano edged up 0.1%, and Polygon slipped by 0.6%. Among meme tokens, Dogecoin inched up 0.4%, while tokens such as $TRUMP remained mostly flat.
Market Outlook
Bitcoin’s current trading activity reflects a balance between improved risk appetite due to positive trade developments and cautious anticipation of significant policy announcements by the Federal Reserve and U.S. regulators. While trade optimism encourages investment in higher-risk assets, broader macroeconomic uncertainties and upcoming guidance from the Fed continue to temper more aggressive price moves in the crypto market.
Investors are advised to monitor closely the Federal Reserve’s statement and the crypto policy report expected later this week, as both are likely to influence Bitcoin’s trajectory in the near term.
Reported by Ayushman Ojha with additional contributions from Vahid Karaahmetovic