Bitcoin Price Stalls At $64K As Fed Weighs Fewer Meetings
WASHINGTON, DC – June 2: The Eccles Building, location of the Board of Governors of the Federal Reserve System and of the Federal Open Market Committee, June 2, 2016 in Washington, DC. (Photo by Brooks Kraft/ Getty Images)
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The Federal Reserve did nothing on July 29. It left the target range at 3.50% to 3.75%. The average 30-year fixed mortgage climbed to 6.66% the next day anyway, an 11-month high in Freddie Mac’s weekly survey. Bitcoin traded at $64,137 early Wednesday, up under 1% on the day and about 49% below the $126,198 record it set on October 6, 2025.
“Every rate call moves my phone before it moves the market,” said Eric Bernstein, president and co-founder of Austin mortgage broker LendFriend. “The thirty-year doesn’t track Fed funds directly, but expectations do, and I’ve watched borrowers lose a quarter point of buying power in the two hours after a press conference.”
At the press conference that afternoon, Reuters reporter Ann Saphir told Chair Kevin Warsh that markets were seeing “a near 100 percent chance of a rate hike” in September and asked how that fed into his thinking.
“We’re not going to be constrained by market prices,” Warsh answered. “We’re not going to be constrained or take verbatim from what the market’s doing.” He said prices are useful to him precisely because the Fed has stopped talking over them. “If we’re trying to land the plane and deliver 2 percent inflation, and we take a very useful source of information and we get it all fogged up by giving it our own forecast, by providing rolling commentary, I can assure you that we’re going to have less information.”
Within a week that near-certainty was gone. Aggregated Kalshi and Polymarket pricing on Tuesday had the Fed holding in September at 54.2% and hiking a quarter point at 44.6%, with a larger hike at 4.5% and a cut at 1.5%. Polymarket alone had turned over $3.7 million on the hold and $3.2 million on the hike. Crypto spent the first half of the year watching those same bettors dump their rate cut hopes, and nothing since has gone the doves’ way.
Warsh also wants fewer of these occasions. The New York Times reported on July 31 that he floated cutting the number of regularly scheduled policy meetings at the July gathering, asking colleagues to send him their views rather than opening a debate at the table. Later reports put the target at six a year. Eight has been standard since Paul Volcker set the cadence in 1981. The statute requires four. A Fed spokesperson declined to comment. The 2026 calendar of September, October and December is expected to stand, so a new rhythm would start in 2027.
Six meetings means roughly nine weeks between scheduled decisions instead of six. Bitcoin trades through all of them.
‘September Is Live’
July was a hold with three dissents. The vote was 9 to 3, with Beth Hammack, Neel Kashkari and Lorie Logan all wanting a quarter-point hike, the first unified three-member dissent since September 2016 by Kraken’s count. Asked where the disagreement sat, Warsh sent reporters elsewhere. “I’ll let the dissenters speak for themselves,” he said. “The way I heard it over the last two days was overwhelming agreement on objectives and authority, and commitment.”
On inflation he was blunter. “There is no soft inflation target, there is no soft implicit target,” he said. “There is only a target, and it is 2 percent.”
Walter Bloomberg, who posts as @DeItaone, had set the scene that morning: “BITCOIN EYES THE FED. Bitcoin climbed 0.8% to $64,344 as the dollar weakened ahead of the Fed’s rate decision. Markets expect no change, but any hawkish signals could lift the dollar and pressure BTC.” By the close @zerohedge was posting that “FED SWAPS NO LONGER FULLY PRICE IN A SEPTEMBER RATE HIKE.”
“Warsh held. Hawkish. ‘Won’t hesitate to stop inflation.’ No forward guidance. September is live. BTC ~$64.5K, barely moved,” the macro account @gdkush posted the next day. “Why? Because the market already priced the hawkish hold.”
“Three FOMC voters already wanted 25 basis points. A hot number grows that group and the market starts pricing a September hike,” the account @Cryptofocus_NL posted. “That lifts the dollar and pays you more to hold Treasuries than risk. Money leaves Bitcoin every time.”
‘The Liquidity Hole’
“We see funded traders cut size by half in the twenty-four hours before a rate decision, and the ones who don’t are usually the ones who breach a drawdown rule that afternoon,” said Noam Korbl, co-founder and chief operating officer of prop-firm comparison site PropFirms. “Spreads widen, slippage triples, and a stop that worked all month stops working. The decision matters far less than the liquidity hole around it.”
Those funded accounts are rarely real money. Chris Hunter, CEO of Vancouver prop firm Maven Trading, said on the On The Margin podcast that “a prop firm does not have regulations. There’s no such thing. If we were a brokerage and managing people’s funds, that would be different. But because of the nature of the game, it’s essentially a game. It’s a trading-based game, skill-based game. There’s no real money being played with.”
The drawdown rule belongs to the firm, and Hunter, whose Maven Trading sells the challenges that create those accounts, is candid about how his industry uses it. “A prop firm is very often kind of this trader versus prop firm sort of identity,” he said. “And a lot of times trying to catch the trader on mistakes so that they could not pay them in the same way that an insurance company is going to try to catch a car crash for any mistakes that they make.”
Kaledora Kiernan-Linn, CEO of onchain derivatives venue Ostium, said on the On The Margin podcast that “macro the new reality TV is sort of our quippy way of putting this.” Ostium lists perpetual futures on commodities, currencies and equity indices alongside crypto. “You can typically guess what the most traded assets are on OSTIM by looking at what’s trending on Twitter,” she said.
“The returns to being good at reading the tea leaves and at sensing momentum shifts and vibe shifts are higher than they’ve ever been in a world where mimetics and sentiment drives price action much more than fundamentals,” Kiernan-Linn said.
Six Weeks Later
In his opening statement Warsh noted that the last meeting was “42 days ago” and that yields across the Treasury curve had moved materially higher in the gap without him.
“Most households don’t feel a rate decision the day it happens,” said Andrew Gosselin, a CPA and personal finance writer who is a senior contributor at SaveMyCent, in written comments. “They feel it six weeks later when a card APR resets or a savings rate quietly drops. That lag is why people misjudge it.”
The households that got through the last cycle intact, Gosselin said, “weren’t the ones predicting the Fed, they were the ones who’d already moved their cash somewhere that pays and fixed what they could fix.”
Meetings sit about six weeks apart now. Six a year pushes that to nine. Warsh reached for the same number on July 29, saying five years of above-target inflation “cannot be cured in nine weeks.”
The data argues on its own until then. Private employers added 44,000 jobs in July, ADP said Wednesday, short of forecasts. Payrolls land Friday. Bloomberg’s survey looks for 85,000, FactSet’s for 100,000. CPI is August 12, PPI August 13, the minutes August 19. Then Jackson Hole, where Warsh has not settled on what to say. “Haven’t made a decision whether it’s going to be a big picture speech, or whether it’s going to be a more traditional set up for all the action we’re going to have between September and December,” he told reporters.
Energy is the other variable. Brent crude traded near $90 a barrel on Tuesday, off the $100-plus prints during the spring Iran conflict and the disruption around the Strait of Hormuz. That spike fuelled bold bitcoin price predictions in March.
The bitcoin bid runs on the same question. Spot ETFs took in $170.1 million on August 3, with BlackRock’s IBIT supplying $111.4 million of it, after bleeding $265.4 million on July 31. Arthur Hayes has argued bitcoin needs the Fed to reach his upside targets, and the bull case has for years assumed the attack on the Fed would end in easier money. What it produced is a chair who publishes less and wants to meet less.
Warsh has never hidden the instinct. “I believe the statute requires a minimum of four meetings, but four is not enough,” he told senators at his April confirmation hearing. “So having more meetings than that is appropriate. But I’ve not even begun to look at the meeting schedules for 2027 and beyond.”
Asked at the press conference what the news was for the average household on a day with no rate change and no guidance, he said: “So, apparently it was news that I had a press conference.”
Bernstein tells his borrowers to stop waiting for it. “I tell people what I tell my crypto clients: lock what you can control,” he said, “because the Fed isn’t going to price your house for you.”
