Weekly Crypto Review: Fed Maintains Rates, Trump Imposes New Tariffs While Bitcoin and Alternative Coins Respond
In the dynamic world of cryptocurrencies, the second quarter of 2021 saw significant movements, particularly in Bitcoin. With Bitcoin's dominance standing at 60%, other altcoins such as Solana (SOL), Dogecoin (DOGE), Cardano (ADA), Hype (HYPE), Stellar (XLM), Suisei (SUI), Chainlink (LINK), Harmony (HBAR), and many more, experienced losses of up to 10%.
The Federal Reserve's decision during this period played a crucial role in the crypto market. Although direct search results analyzing the impact of the decision on Bitcoin price in Q2 2021 are scarce, insights can be inferred from general links related to Fed decisions and Bitcoin price behaviour in 2025.
When the Federal Reserve holds interest rates steady or signals caution about future hikes, Bitcoin tends to consolidate or trade sideways with bouts of volatility, as investors assess potential future monetary policy moves. If the Fed cuts rates, Bitcoin has historically reacted with bullish momentum, often forming strong breakouts or bullish patterns, as easier monetary policy drives liquidity into scarce assets like Bitcoin. Conversely, hawkish Fed comments create short-term volatility and pressurize Bitcoin prices.
Applying these general relationships retrospectively, the Fed in Q2 2021 was largely accommodative due to COVID-19 recovery policies, maintaining low interest rates and signaling extended accommodative monetary policy. This environment generally supported higher Bitcoin prices and increasing institutional demand during that time. Therefore, the Federal Reserve's decision in Q2 2021 likely served as a supportive backdrop for Bitcoin's price appreciation, contributing to bullish momentum as investors sought hedges against inflation and monetary easing.
However, short-term price fluctuations from Fed communications or inflation concerns could have induced volatility within the quarter. Exact price impact metrics for Q2 2021 are not provided in the current search results.
Elsewhere in the crypto sphere, Strategy, a company led by Michael Saylor, held an IPO and raised over $2.5 billion, using a portion to accumulate 21,021 BTC. Ethereum (ETH) celebrated its 10th birthday this week, with potential achievements and future developments discussed. CryptoQuant suggests that the altseason has already begun, with several factors pointing towards this.
On the other hand, Ethereum ETF inflows soared in July, exceeding the combined inflows of the previous 11 months. Ripple (XRP) has also slumped by 4.8% compared to its valuation last week. Reports suggest that Bitcoin whales have been buying aggressively, now holding 68% of the cryptocurrency's supply.
The total market capitalization currently stands at $3.83T, with a 24-hour trading volume of $180B. For a complete price analysis of Ethereum, Ripple, Cardano, Solana, and HYPE, refer to the provided link.
In other news, the US GDP report for Q2 showed a significant economic increase of 3%. The US White House released a Digital Asset report, focusing on stablecoins and DeFi but not providing details about a strategic Bitcoin reserve. The Federal Reserve left the interest rates unchanged for the fifth consecutive time.
Bitcoin's price slipped from nearly $119,000 to under $116,000 immediately after the Fed's decision. Bitcoin marked its highest monthly closure at roughly $115,000 yesterday evening, despite being 2.5% down on the week. Ethereum (ETH) has slumped by 4.8% compared to its valuation last week.
Binance offers a $600 welcome offer for new accounts (exclusive link provided), while Bybit offers a $500 free position on any coin for new sign-ups (exclusive link provided).
In summary, the Federal Reserve's accommodative stance in Q2 2021 helped fuel Bitcoin price gains amid macroeconomic uncertainty, with low interest rates encouraging crypto inflows and price rallies typical of easing cycles documented in subsequent years. The crypto market continues to evolve, with significant developments and fluctuations in the prices of major cryptocurrencies like Bitcoin and Ethereum.
- The Federal Reserve's accommodative monetary policy in Q2 2021, due to COVID-19 recovery measures, likely contributed to the bullish momentum of Bitcoin's price appreciation.
- Amidthe general losses of up to 10% experienced by altcoins like Solana (SOL), Dogecoin (DOGE), Cardano (ADA), Hype (HYPE), Stellar (XLM), Suisei (SUI), Chainlink (LINK), Harmony (HBAR) and others, Bitcoin's dominance remained at a strong 60%.
- In the dynamic world of cryptocurrencies, trading platforms like Binance and Bybit have offered incentives for new accounts, such as a $600 welcome offer (provided link) and a $500 free position on any coin for new sign-ups (provided link), respectively.
- In addition to Bitcoin, Ethereum (ETH) marked its 10th birthday and witnessed a slump of 4.8%, while its ETF inflows soared in July, exceeding the combined inflows of the previous 11 months. Meanwhile, DeFi and stablecoins have been under focus with the US White House releasing a report, although it did not provide details about a strategic Bitcoin reserve.
