Bitcoin price hits two-week lows as it ignores 100% Fed rate cut odds.

The primary topic of discussion among traders is still Bitcoin liquidity grabs, and BTC price weakness does not improve the day after the FOMC.

BTC price weakness fails to resolve the day after FOMC with Bitcoin liquidity grabs still the main talking point for traders.

At the August 1 Wall Street open, Bitcoin BTC tickers fell $63,185 as the cryptocurrency resisted new interest rate cuts from the central bank.

Dovish Fed gives Bitcoin bulls no respite. According to data from TradingView and Cointelegraph Markets Pro, the BTC price lost momentum after dropping 2.4% the day before.

Despite the Federal Reserve of the United States adopting a dovish stance at the most recent meeting to decide on interest rate changes, the problem persisted.

After the Federal Open Market Committee (FOMC) decided to keep rates the same, Fed Chair Jerome Powell said in a press conference that a cut might happen at the September meeting.

He stated in a prepared statement, "We have stated that we do not expect it will be appropriate to reduce the target range for the federal funds rate until we have gained greater confidence that inflation is moving sustainably toward 2%."

"Our confidence has increased as a result of the inflation readings from the second quarter, and additional positive data would further bolster that confidence. Meeting by meeting, we will keep making decisions."

According to data from CME Group's FedWatch Tool, markets had already priced in a 100% likelihood of a September cut and saw this as 0.25 percent in the end.

BTC/USD hit local lows of $63,400, its lowest level since July 19, despite the positive reaction from US stocks to the event.

The mental illness does not go away. Popular trader Crypto Chase summed it up for X followers that day: "Historically, liquidity sweeps have failed if they have been endlessly frontrun."

“I don't have a strong read on this, but I think it could be anywhere from the middle of the 61s to 59s. Bids simply depend on your level of assertiveness and confidence. A low acceptance rate is unattractive.

CrypNuevo, a fellow trader, saw the possibility of a short squeeze from close to current levels.

He predicted that such an event could occur before the weekend, noting that the majority of liquidation levels were above rather than below spot.

Crypto markets "on edge"

Zooming out, trading firm QCP Capital said that inflows into the newly-launched US spot Ether exchange-traded funds (ETFs) could provide a short-term narrative for crypto market sentiment.

Related: Bitcoin whales go on ‘unprecedented’ $23B July buying spree — New data

“Unfortunately, the rally in equities was not felt in crypto. Crypto experienced a broad sell-off overnight and into this morning,” it wrote in its latest bulletin to Telegram channel subscribers.

"Traders pay close attention to daily ETH ETF outflows and additional supply pressures from Mt. Gox and the US government, which keep the market on edge,"

QCP saw ongoing posturing by US Presidential candidates playing a key role for crypto going forward, with markets “potentially rangebound until the next catalyst.”

“Longer-term, discussions among US Presidential candidates and Senators regarding a sovereign Bitcoin reserve, and the potential for other nations to follow suit, could fundamentally alter the cryptocurrency landscape,” it continued.

"The establishment of a U.S. or sovereign "put" on BTC prices may have significant repercussions, making accumulation on dips potentially a strategic investment strategy."

Due to the introduction of the first spot Ether exchange-traded funds (ETFs) in the United States and an expanding list of institutional clients, Crypto.com has surpassed Coinbase in terms of trading volume.

According to Messari data, centralized cryptocurrency exchange Crypto.com saw a 23% increase in reported 24-hour trading volume, surpassing Coinbase's $2.12 billion on August 1.