Bitcoin rises 22% in July and it's about to finish its best month since October, but the Fed is just around the corner

Bitcoin´s price action is giving up some strength after breaking out of its month-long consolidation period. All in all, the digital asset remains above $23,000 resistance, keeping hopes for the market rally to $25,000. For now, the queen of cryptos is still up 22% this month and remains on track to post its best monthly performance since October of last year. The big question is whether the US Federal Reserve (Fed) rate decision will spoil its ascent.

"Let's remember that it is the Fed's monetary policy that broke Bitcoin´s price support line," stated Naeem Aslam, head of analytics at AvaTrade. A 75 basis point interest rate hike by the US central bank is expected next week and "that could take the impulse out of Bitcoin´s price," he warned.

The momentum presented by the digital asset has been slowed by the news that Elon Musk sold 75% of Tesla's Bitcoins. These reports triggered a buying blip after the cryptoasset left a more than one-month high above $24,000. Musk, CEO of the electric car maker, alluded to concerns about his company's "overall liquidity" as a reason for the sale.

Tesla sold $936 million worth of Bitcoins in the second quarter, more than a year after the company bought $1.5 billion worth of the cryptocurrency at the peak of its massive growth and popularity.

Also affecting the price is news that three people, including a former Coinbase employee, have been charged with cryptocurrency insider trading. Former Coinbase product manager Ishan Wahi allegedly provided insider information to his brother, Nikhil Wahi, and a friend, Sameer Ramani, about Coinbase's upcoming moves. The friend and brother allegedly used that information to conduct cryptocurrency trades before they were included among the products that the crypto broker allows its customers to trade.

Coinbase has launched an investigation and stated it will immediately fire any employees involved and refer the matter to the authorities. Shares of the cryptoasset exchange closed down 2% on Thursday and give up 1.71% on Friday.

The digital token market leaves moderate rises, with Ethereum at $1,500 and the capitalization of all 'cryptos' above $1 trillion.