Bitcoin (BTC) fell slightly on Friday, July 25, 2025, to approximately $115,731.42, down over 2% in the last 24 hours. Ethereum (ETH) fell by 1.7% to $3,706.77. Other cryptocurrencies like Solana (SOL), Ripple (XRP), and Litecoin (LTC) fell accordingly, reducing the world’s crypot market capitalization to $3.8 trillion.
Central Bank policy action awaited
The recent market behavior is concurrent with heightened anticipation of upcoming Federal Reserve (Fed) and Bank of Japan (BOJ) meetings. Both are set to keep interest rates at current levels, though the markets keenly anticipate some clues regarding future policy steps. The U.S. dollar has recovered from two-week lows but will record its largest weekly decline in a month as U.S. tariff talks and rumor of potential rate reductions by the end of 2025 continue.
Gauging market mood and investor tactics
Despite the recent fall, overall market sentiment is optimistic but cautious. The Fear & Greed Index is at 66, which indicates a general greed attitude among investors. Near-term volatility is expected, but long-term prospect for cryptocurrencies is bullish due to institutional onboarding and regulatory progress.
Investors are best to keep abreast of upcoming central bank meetings and political remarks, as they are still a key driving force behind the markets. Diversification and long-term planning as an investor are recommended to deal with the natural.