**Bitcoin Faces Volatility as Markets Await Fed's Powell**

Bitcoin (BTC) experienced notable volatility on July 31 as Wall Street opened, with markets bracing for key U.S. macroeconomic events and the monthly close. BTC/USD hit daily highs of $66,814 on Bitstamp, ahead of the Federal Reserve's interest rate decision.

- **Fed Watch:** The market doesn't expect rate changes until September, but traders are keenly watching Fed Chair Jerome Powell's comments. QCP Capital anticipates no immediate rate cuts but sees potential for cuts in September and December.

- **Economic Indicators:** Eurozone inflation rose to 2.6%, surpassing expectations, adding to market jitters.

- **Bitcoin's Technicals:** Keith Alan from Material Indicators emphasized the importance of the 21-week simple moving average at $65,700 as crucial support. Loss of this level could lead to further declines.

- **Market Sentiment:** Traders like Mark Cullen are preparing for increased volatility, especially with the FOMC rate decision on the horizon.

Stay tuned as the market reacts to these developments.