Bitcoin's price fluctuates around $118,000 as traders anticipate further clarity on macroeconomic policies. Recent diplomatic dialogues between the U.S. and China hinted at a potential extension of tariff pauses, although no concrete agreement has been reached. This uncertainty is contributing to a stagnant crypto market, which has witnessed Bitcoin trading within a narrow range for over a week. Economic forecasts suggest a 65% chance of a Federal Reserve rate cut in September, a factor that typically bolsters risk assets like cryptocurrencies. Analysts emphasize the significance of upcoming macroeconomic indicators and the Fed's tone in their decisions. Despite a surge in the U.S. money supply to record levels, Bitcoin and other cryptocurrencies have shown a retreat, indicating a disconnect between liquidity and market performance. The market is poised for movement as traders look to the Fed's meeting for signs of economic weakness that could affect interest rates.

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