Bitcoin price was recorded below $116,000 on August 1, 2025, due to changes in the Federal Reserve's policy and investor sentiment.
Impact of Fed Policies on the Crypto Market
The Bitcoin price drop of 1.94% is linked to the hawkish monetary policy of the Fed, led by Jerome Powell. The decisions made by the Fed have heightened investor concerns about the future of the crypto market.
Crypto Market Reaction
The crypto market reacted immediately to Bitcoin's drop, with many major altcoins also showing price declines. Analysts note that macroeconomic pressures and Fed policies led to risk reduction among institutions.
Future of Crypto Investments
Based on on-chain data and past trends, there are indications of potential altcoin rallies following the current correction of Bitcoin. Analysts point out the historical tendency for volatility during Fed rate increases.
The plunge of Bitcoin below $116,000 reflects overall investor concerns regarding the Fed's hawkish monetary policy and its influence on the economic situation in the crypto space. Future market dynamics will depend on forthcoming actions from the Fed.
