Trakx Weekly Update: Crypto Dips As Fed Holds

Key Crypto Market Figures

CTIs Weekly Performance

Digital asset prices stumbled last week, with our flagship large-cap Top10 Crypto CTI declining by just under 9%. As testament to the breadth of the pull-back even our top performing CTI, the typically defensive Inflation Hedge, finished up in the red, slipping by 0.5% over the period. By contrast, the worst performer was the higher-beta Meme CTI, after it dropped almost 20%.

Fed Double Dissent

Digital assets experienced an initial liquidation wobble following last Wednesday’s FOMC meeting. The issue was not the widely expected decision to leave interest rates unchanged—already priced in by US short-term rate futures—but rather the more hawkish tone of the post-meeting press conference. Chair Powell stated that recent data pointed to a “solid position” for the US economy, though near-term uncertainty remained high, particularly as the effects of tariffs were just starting to emerge. As a result, most FOMC participants concluded that the best course was to maintain current monetary policy, allowing flexibility to react “in a timely way to potential economic developments.”

Unsurprisingly, the Fed’s decision did not sit well with the Trump administration, which has been advocating for aggressive rate cuts to ease the cost of servicing a Federal debt now at 125% of GDP. The following day, Trump intensified his criticism of Fed leadership on social media, calling Powell “TOO ANGRY, TOO STUPID, & TOO POLITICAL.” Ironically, such overt and combative rhetoric may be counterproductive—potentially reinforcing the Fed’s resolve to hold rates steady as a demonstration of its independence.

Still, signs suggest Trump may eventually get the rate cuts he’s seeking. For one, not all FOMC members backed the majority decision. Regional Fed governors Bowman and Waller (a Trump appointee during his first term) both voted for a 25bp cut—marking the first double dissent on US monetary policy in over 30 years. Additionally, last Friday’s jobs report was notably weak. Beyond the headline miss, substantial downward revisions to May and June data erased 260,000 jobs, leaving employment growth over the past three months at its slowest pace since the pandemic.

US Digital Roadmap

Coinciding with the Fed meeting, the Trump administration released a 163-page report from the President’s Working Group on Digital Asset Markets, outlining a regulatory roadmap for crypto. The report proposed a framework aimed at ensuring the “United States leads the blockchain revolution and ushers in the Golden Age of Crypto.” Stablecoins received dedicated focus with a full chapter, yet there was minimal mention of the government’s strategic Bitcoin Reserve, established by executive order in January. This lack of detail was disappointing for crypto bulls who were hoping for clarity on how the reserve would operate and whether the stockpile would expand over time. Separately, SEC Chair Paul Atkins unveiled Project Crypto—an initiative to modernize US crypto regulation and support the transition from off-chain systems to an on-chain infrastructure.

Sources: Trakx, Coingecko, Alphavantage

Market Trends

• Crypto Bulls Get Hit With $200M in Liquidations as Powell Rattles Market With Fed Warning: CoinDesk
• White House unveils crypto policy ‘roadmap’ meant to usher in ‘golden age’: ABC news
• SEC debuts ‘Project Crypto’ to bring U.S. financial markets ‘on chain’: CNBC
• Coinbase’s tie-up with JPMorgan Chase is a ‘huge adoption unlock’ for crypto, analysts say: DLNews
• CryptoPunks Rally Past $200K Floor for First Time in Over a Year Amid NFT Rebound: Decrypt

Trakx News

• Ryan published July 2025 in Crypto our monthly update on digital asset markets. This time how greater US regulatory clarity combined with rising fiscal concerns helped boost crypto prices and enabled Bitcoin to hit another all-time high.

Trakx CTIs Performance

Sources: Coingecko and AlphaVantage

*Return of bitcoin is calculated since 01/05/2020, while CTIs performances were calculated since their respective launch date.
**Includes simulated performance.
***The risk signal is determined according to the historical volatility level, the higher the riskier.

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Disclaimers: No Investment Advice. Index returns and statistics are for illustration only. Index returns do not reflect any transaction costs or expenses. Past performance does not guarantee future results. The information provided in this newsletter does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the newsletter content as such. Trakx.io does not recommend that any cryptocurrency should be bought, sold, or held by you. Readers shall conduct their own due diligence and consult their financial advisors before making any investment decisions.