Bitcoin at $119K: Will Fed or Galaxy Digital Break Price Wall?

Bitcoin is still hovering close to $119,000, stuck in a narrow range as traders assess whether upcoming events might finally push the market in a clear direction. 

With the Federal Reserve’s decision expected within days and Galaxy Digital moving large sums of BTC, many investors are questioning whether the price is ready to move or if we’re heading for another lull.

Galaxy Digital Moves $450M in BTC, But the Market Barely Flinches

Recent activity from Galaxy Digital has raised eyebrows. The company moved nearly 3,800 BTC, worth around $450 million, most of which ended up on exchanges. 

Under normal conditions, that sort of activity might rattle traders. But in this case, the market didn’t react much. Instead, Bitcoin quickly rebounded after a brief dip below $117,000 and returned to the $119,000 zone.

This isn’t the first time Galaxy has made a large BTC transaction. Last week, they facilitated a massive 80,000 BTC sale, which led to a dip toward $114,500. 

However, the quick recovery afterwards suggests the market may be getting used to these movements. It also reflects improving liquidity and a more mature investor base that doesn’t panic at every large wallet shift.

Still, analysts remain cautious. Some suggest another price drop could happen if support levels are breached again. 

While short-term technical indicators like the 21-day moving average around $117,480 continue to hold, any sudden shift, especially if Galaxy makes another sizeable move, could tip the balance in either direction.

Read also: Bitcoin SSR Hits 18.8: What It Means for BTC Price

All Eyes on the Fed and Tariff Deadline: Will Bitcoin React?

Macroeconomic pressure is another factor contributing to Bitcoin’s sideways behaviour. The Federal Reserve is set to announce its latest policy decision, with expectations pointing toward interest rates remaining unchanged. 

However, what traders really care about is the Fed’s tone on future policy. With inflation still sitting above target, the idea of higher rates persisting could weigh on speculative assets like crypto.

This meeting also coincides with a critical trade deadline. If the U.S. fails to reach agreements with the EU and China by August 1, new tariffs could be imposed. Trade tensions have a history of creating uncertainty in global markets, and Bitcoin is not immune to those effects.

The cautious mood has also been reinforced by regulatory developments. A U.S. Treasury report focusing on stablecoin rules and tax policy is expected soon, and could bring more clarity, or confusion, to the broader crypto space. 

At the same time, the SEC has delayed its decision on the Truth Social Bitcoin ETF application until mid-September, reflecting the broader trend of slow-moving regulation under its current leadership.

In short, while Bitcoin may be quiet on the surface, there’s no shortage of potential triggers lurking in the background.

Read also: Will Bitcoin Hold Above $115000 This Week?

Is the Resistance Too Strong, or Just Waiting to Crack?

Bitcoin has shown resilience, but that doesn’t mean it’s free from risk. The $119,000 zone has become a psychological and technical ceiling. Each time the price nears this level, sellers emerge and momentum fades. Despite several attempts, the breakout hasn't come, yet.

Some believe this could change soon. With Marathon Digital raising nearly $1 billion to buy more Bitcoin, demand from institutional players could help absorb supply and push prices higher. 

Marathon now holds around 50,000 BTC, valued at $5.8 billion, making it the second-largest corporate holder after MicroStrategy.

Technical traders are closely watching the next moves. The recent bounce from $117,000 has created a short-term support area, but bearish divergence across momentum indicators suggests caution. 

A clean breakout would likely require a catalyst, possibly from the Fed, or if Galaxy’s recent BTC movements turn out to be redistributions instead of direct sales.

On the other hand, a failure to hold the current support range could send BTC down to the $108,000 region. 

That area has been identified as a likely target if consolidation fails. For now, Bitcoin appears to be building energy for a larger move, but whether it’s up or down remains uncertain.

Read also: Why Bitcoin Is Heading to Its Final Rally

Conclusion

Bitcoin’s price is currently caught between opposing forces. On one side, large transactions from players like Galaxy Digital and uncertainty around U.S. trade policy create potential downside pressure. 

On the other, growing institutional demand and expectations of looser monetary policy later this year offer support. 

With so many key developments happening simultaneously, the $119,000 range could either become a stronghold or a springboard. 

For traders looking to position safely, platforms like Bitrue offer an easier and more secure way to navigate these volatile conditions with access to advanced tools and strong liquidity.

Read also: Bitrue Earn Monday is Live Now

FAQ

What is causing Bitcoin’s current price stagnation?

Bitcoin is hovering near $119,000 due to uncertainty from macroeconomic factors like the Federal Reserve meeting and trade negotiations, as well as large BTC movements from Galaxy Digital.

Is Galaxy Digital selling all its Bitcoin?

No, while Galaxy Digital recently moved nearly 3,800 BTC to exchanges, the impact on price has been minimal. It is unclear if the moves are for client sales or internal transfers.

How could the Fed meeting affect Bitcoin?

If the Fed signals that interest rates will remain high for longer, it could weigh on Bitcoin. However, dovish signals may boost investor confidence and push BTC higher.

What role does Marathon Digital play in the market?

Marathon Digital recently raised $950 million to buy more Bitcoin, increasing institutional demand and possibly helping to support prices.

Is it a good time to trade Bitcoin?

The market is currently unpredictable, but those looking for efficient and secure trading can consider platforms like Bitrue, which offer tools suited for active crypto traders.

Investor Caution 

While the crypto hype has been exciting, remember that the crypto space can be volatile. Always conduct your research, assess your risk tolerance, and consider the long-term potential of any investment.

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