Bitcoin prices edged slightly lower in Wednesday trading, extending losses for the week as traders remained largely cautious ahead of the Federal Reserve’s interest rate decision and the August 1 deadline set by President Donald Trump to impose new tariffs.
The world’s largest cryptocurrency fell 0.8% to $117,911.3 by 01:32 a.m. Eastern Time (05:32 GMT), after trading relatively flat following its mid-July rally past the $123,000 mark.
While Bitcoin remains on track for strong July gains, the recent surge has left it vulnerable to profit-taking. It also received limited support from “Strategy” (the new name for MicroStrategy, listed on Nasdaq as MSTR), despite the company announcing it had raised $2.5 billion to purchase 21,021 bitcoins.
Fed decision and tariff threats limit crypto momentum
Markets broadly adopted a wait-and-see stance ahead of the Federal Reserve’s policy decision on Wednesday. The central bank is widely expected to keep interest rates unchanged, despite mounting pressure from Trump and his allies to begin cutting rates.
Some analysts believe the Fed may hint at a less hawkish outlook, given rising concerns over the economic impact of Trump’s tariffs and signs of a cooling labor market.
Still, uncertainty around the Fed’s direction has kept traders defensive. Bitcoin posted only limited gains even after the recent trade deal between the US and the European Union.
Although the EU deal marks progress in Trump’s broader effort to restructure global trade, many major economies still face the threat of steep US tariffs starting Friday, August 1. Trump has made clear he does not intend to extend the deadline, which could trigger duties ranging from 15% to 50% on several key trading partners.
While interest rates and tariffs do not directly affect cryptocurrencies, they significantly influence overall market sentiment, which in turn impacts speculative assets.
“Strategy” raises $2.5 billion, buys 21,021 bitcoins
On Tuesday, Strategy – led by Michael Saylor – announced it had raised approximately $2.5 billion through a new issuance of preferred shares.
The company used the proceeds to acquire around 21,021 bitcoins at an average purchase price of $117,256 each, bringing its total holdings to 628,791 bitcoins.
Kraken reportedly seeks $500 million at $15 billion valuation
The Information reported Tuesday evening that cryptocurrency exchange Kraken – ranked 14th globally by daily trading volume – is aiming to raise $500 million in a funding round targeting a $15 billion valuation.
The move comes in tandem with similar efforts by other exchanges, as platforms seek to capitalize on renewed institutional interest in digital assets. This shift, alongside optimism for more crypto-friendly policies under a second Trump term, has helped fuel Bitcoin’s strong 2025 rally.
PayPal sparks crypto momentum with 400M-user payment integration
PayPal ignited another wave of excitement in the crypto market after announcing it will enable more than 400 million users to make payments with Bitcoin and over 100 other cryptocurrencies.
This isn’t just a minor app update – it could mark a turning point in Bitcoin’s evolution into a mainstream payment method, paving the way for the long-awaited goal of hitting $250,000 by 2025.
Part of the new “Pay with Crypto” initiative, the feature allows US merchants to accept crypto payments using wallets like MetaMask, Coinbase, and Kraken. It supports instant conversion of cryptocurrencies into fiat or stablecoins like PYUSD at the moment of purchase.
The system makes crypto payments seamless for businesses of all sizes, offering new models for fast settlement, low fees, and even a 4% annual yield on PYUSD balances.
With instant conversion, merchants won’t have to worry about price volatility – they’ll receive payments in dollars, while crypto-savvy consumers can pay with their coins. This removes a major obstacle to real-world crypto adoption and brings Bitcoin closer to functioning as an actual currency rather than “gold in a vault.”
