Why is Crypto Down Today and Will It Rise Again? Fed Meeting Effects

The global crypto market is facing a strong wave of uncertainty. The total market cap has dropped to $3.99 trillion, showing a 5% decline in the last 24 hours, according to CoinGecko. While the Bitcoin price today is holding at around $118,860.47, most altcoins are crashing badly.

Why is Crypto Down Today?

SEC ETF Delay : SEC delayed two significant ETFs—Truth Social Bitcoin and Grayscale Solana ETF. Solana ETF delay and SEC ETF delay combined have triggered bearish market sentiment.

Galaxy Digital Bitcoin Sell-Off : Galaxy Digital offloaded more than 80,000 BTC valued at more than $9 billion to a prominent investor for long-term use. This created fear around Bitcoin and questions such as why is Bitcoin down today.

Trump Tariff Plan : President Donald Trump has announced a new global tariff plan. Starting from August 1, there will be a tariff of 15-20% on all foreign imports, including Europe. This contributes to the anxiety of global markets and affects digital assets as well.

Bitcoin Holds While Altcoins Crash: What's Fueling the Divergence?

Interestingly enough, BTC is merely weak by a small margin today (0.1%), i.e., it's going into a consolidation phase. In contrast, major altcoins are bleeding:

Source: CoinMarketCap

• Ethereum fell 0.45% to $3,873.18

• XRP price crash: Down 3.04% to $3.15

• Solana dropped over 5% to $184.53

• Dogecoin lost 6% to $0.2289

This is a clear altcoin price crash, with BTC dominance rising to 59.3%. Experts believe this phase might delay the altcoin season, unless things improve after the meeting.

Is the FOMC Meeting Spooking the Crypto Market? What Traders Fear Most

The FOMC meeting today is a major factor behind the fear in crypto. Scheduled for July 29–30, this Fed meeting 2025 is full of drama. The key issue? A clash between US President and Fed Chair Jerome Powell.

• Powell to cut interest rates twice in 2025—but not now . Possibly in September .

• Trump is pushing for an immediate cut to 1% , or else asking Powell to resign.

Because of this, traders are unsure about the Fed meeting interest rates outcome. A pause or no rate cut could delay the crypto bull run , but a surprise cut may spark a rally.

Where Will Bitcoin and Altcoins Head After the FOMC Verdict? Expert Views

If the Fed meeting outcome goes in favor of Trump’s push, then a rate cut could fuel major growth. BTC might break its all-time high of $122K , and altcoins may follow the rally. But if Powell holds his ground, there may be no major gains soon.

So, why is crypto crashing and will it recover ? Recovery depends heavily on the Fed decision and how the market digests the Trump tariff plan and ETF delays .

Conclusion

Today’s crypto crash is a mix of fear, delays, and politics. The SEC ETF delay , Trump’s trade war , and the ongoing Fed vs Trump rate cut drama are shaking investor confidence. All eyes are now on the Fed meeting 2025 . A bullish turn is still possible—but only if things settle in favor of easier monetary policy.

Disclaimer: This article is for informational purposes only. It does not provide investment advice. Always do your own research before making financial decisions.