On July 31, 2025, the crypto assets market experienced an unexpected pullback. Bitcoin briefly fell below $116,000, and Ethereum also dropped to below $3,600. Although the decline was relatively limited, considering the recent strong performance, this adjustment exceeded market expectations.

The main reason for this pullback is the Federal Reserve's shift in attitude towards a rate cut in September. According to the latest statement from the Federal Reserve Chairman, the possibility of a rate cut in September has become uncertain, and everything will depend on economic data. The market's expectation probability of maintaining interest rates in September has risen from 33.6% to 51.8%.

It is worth noting that despite facing political pressure, the Chairman of the Federal Reserve remains committed to its independence and maintains a cautious monetary policy stance. This firm attitude may be an important factor supporting the continued strength of the dollar.

However, the market soon showed resilience. As U.S. stocks remained stable, cryptocurrency prices began to recover later in the day. In particular, Ether has approached the $3,900 mark again, demonstrating strong rebound momentum.

A key factor behind this pullback is the continued large-scale buying by institutional investors. The competition among institutions in the Ethereum market is still intense, and based on the current flow of funds, this 'Ethereum battle' may have only just begun.

Although the market may fluctuate in the short term due to Federal Reserve policies, the continued entry of institutional investors still provides strong support for the long-term development of the crypto assets market, especially Ethereum. Investors need to closely monitor future economic data and policy changes to better grasp market trends.