It was a turbulent week on the global stage. A record leverage unwind shook markets in Asia, the Federal Open Market Committee (FOMC) made a contested decision, and the AI selloff continued to rattle investor confidence. Yet, amidst the chaos, crypto held its ground. Bitcoin dipped only around 3% over the week, remaining within the US$63,300-US$65,500 range — a sign of quiet resilience in the face of broader market instability.
Even news of the likely delay of the Clarity Act — anticipated to reach the Senate floor after the summer recess — failed to shake Bitcoin from its steady range. Despite outflows of US$426m for the week, Bitcoin's relative stability came as a welcome relief against a backdrop of volatile equity markets.
The week's most gripping chapter unfolded at Wednesday's FOMC meeting. For the fifth consecutive meeting, the Fed held rates at 3.50-3.75% — but not without drama. Three hawkish dissents cast a shadow over the decision, hinting at a divided house. Then came the press conference. Having once described 2% as a hard target for inflation, Fed Chair Warsh chose to sidestep mounting concerns, leaving the market to draw its own conclusions. The result? A sharp yield curve steepening and a dramatic decline in the odds of a September hike.
Yet the story isn't over. If summer heat extends to inflation data, another hike could still be on the cards. For Bitcoin believers, this inflation-tolerant Fed combined with rising long-end yields is precisely the environment where Bitcoin's fixed-supply argument truly shines.
