Bitcoin Holds Steady Near $119,000 Amid Trade Optimism and Upcoming Fed, Crypto Policy Events
By Ayushman Ojha, Investing.com — July 28, 2025
Bitcoin’s price remained steady near the $119,000 level on Monday, buoyed by market optimism following a favorable U.S.–EU trade agreement announced over the weekend. Despite this positive sentiment, the cryptocurrency traded within a narrow range as investors awaited the Federal Reserve’s policy decision this week and a key U.S. crypto regulatory report due on July 30. As of 09:17 AM ET (13:17 GMT), Bitcoin was quoted at approximately $118,850, representing a modest gain of 0.5% following a rebound from its two-week lows recorded during weekend trading.
Market Sentiment Lifted by U.S.–EU Trade Pact
The latest uptick in Bitcoin’s price came amid growing investor confidence sparked by a new U.S.–EU trade framework agreement revealed Sunday. This agreement reduces the previously proposed 30% tariff on European imports to a more moderate 15%. Furthermore, it includes substantial commitments from the EU to purchase $750 billion worth of U.S. energy and make significant investments in arms and infrastructure.
This deal effectively mitigated political risks and trade uncertainties, prompting a shift in market sentiment toward risk-on assets like equities and cryptocurrencies, including Bitcoin. Financial markets generally interpreted the agreement as a stabilizing factor, encouraging investors to move away from traditional safe-haven assets.
Eyes on Federal Reserve Meeting and Crypto Policy Report
Looking ahead, the cryptocurrency market’s focus turns to two crucial events expected to influence direction:
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Federal Reserve Meeting (July 28-30): The U.S. central bank’s two-day meeting concludes on Wednesday, with consensus strongly anticipating the Fed to maintain its benchmark interest rate within the current 4.25%–4.50% range. However, investors will be closely scrutinizing any forward guidance or comments regarding potential rate cuts later this year. A dovish tone could diminish the appeal of low-yield safe assets and provide further support to risk assets like Bitcoin.
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U.S. Crypto Policy Report (July 30): The Treasury and regulatory agencies are set to release a comprehensive cryptocurrency policy report. Market participants expect it to introduce plans for a strategic Bitcoin reserve and to clarify regulatory frameworks around stablecoins and other digital asset sectors. Enhanced regulatory clarity is widely viewed as a catalyst to boost institutional confidence and foster broader adoption of cryptocurrencies.
Despite these positive developments, Bitcoin’s trading has remained somewhat muted, reflecting investor caution amid ongoing macroeconomic uncertainties and the impending policy catalyst events.
Ethereum ETF Inflows Surge, Bitcoin Funds See Moderate Outflows
While Bitcoin’s price showed restrained movements, other cryptocurrencies revealed stronger activity:
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Ethereum (ETH): Ethereum saw significant gains, rising 1% to $3,857.22, marking its highest point since December 2024. According to CoinShares, Ethereum-focused investment products attracted $1.59 billion in inflows last week alone, representing the second-largest weekly inflow on record. Year-to-date inflows into Ethereum ETFs have reached $7.79 billion, already surpassing totals for the entire previous year.
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Bitcoin Products: In contrast, Bitcoin investment funds experienced $175 million in outflows last week despite Bitcoin’s solid market performance. Nevertheless, Bitcoin-based funds continue to lead in cumulative monthly and year-to-date inflows.
Most other altcoins remained relatively flat on Monday following the weekend’s market rally: XRP held steady near $3.20, Solana gained 2.5%, Cardano edged up 0.1%, and Polygon slipped slightly by 0.6%. Meme tokens such as Dogecoin and $TRUMP exhibited minor price changes.
Broader Market Overview
The broader financial markets responded positively to the trade agreement and ongoing economic developments:
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U.S. stock indices showed mixed performance with the S&P 500 and Nasdaq Composite posting mild gains, while Dow Jones displayed slight losses.
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The U.S. Dollar Index strengthened by 0.48%, reflecting ongoing currency market volatility tied to trade and interest rate expectations.
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Commodities such as crude oil and natural gas experienced moderate price increases.
Conclusion
Bitcoin’s price action early this week underscores a market balancing optimism from easing trade tensions with caution amid imminent monetary policy and regulatory decisions. Investors appear poised to closely monitor the unfolding Federal Reserve announcements and upcoming crypto policy report, both of which could significantly shape the cryptocurrency landscape in the coming months.
As Bitcoin hovers near $119,000, traders will be watching for any directional cues that may signal whether the cryptocurrency will break out of its current range or continue trading conservatively until these key events conclude.
Additional reporting by Vahid Karaahmetovic.
Price Snapshot as of July 28, 2025, 09:17 ET
- Bitcoin (BTC): ~$118,850 (+0.5%)
- Ethereum (ETH): $3,857.22 (+1.0%)
- XRP: $3.20 (unchanged)
- Solana (SOL): +2.5%
- Cardano (ADA): +0.1%
- Polygon (MATIC): -0.6%
- Dogecoin (DOGE): +0.4%
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