Although it also posed a threat to the East Coast of the United States, Felix curved northward and then east-northeastward while remaining offshore, thereby avoiding landfall.

The storm did approximately $2.5 million (1995 USD) in damage on Bermuda, while rough seas produced about $132,000 in losses along the United States coastline.

After an increase in convection, or thunderstorms, the National Hurricane Center (NHC) classified the system as Tropical Depression Seven at 0000 UTC on August 8, about 460 mi (740 km) west-southwest of the Cape Verde islands.

[1] With a strong ridge to the north, the nascent depression moved generally west-northwestward, and the combination of favorable upper-level conditions and warm sea surface temperatures allowed for gradual intensification.

Beginning at 1200 UTC on August 11, the hurricane began undergoing rapid deepening,[1] and by the next day, concentric eyewalls were observed, indicative of a strong storm.

At that time, Felix was located north of the Lesser Antilles, moving to the north-northwest due to an approaching trough weakening the ridge.

On August 15, the hurricane passed about 75 mi (120 km) south of Bermuda, and a building ridge was anticipated to allow Felix to continue its trajectory toward North Carolina.

[1] Beginning on August 15, the NHC began forecasting that the hurricane would make landfall on the Outer Banks of North Carolina within two days.

[6] Early on August 16, the eye became better defined,[7] although the feature diminished within a few hours, and the NHC was on the verge of downgrading Felix to tropical storm status.

[9] During this time, the system remained a minimal hurricane, maintaining a large eye about 60 to 80 miles (95 to 130 km) in diameter, but with weak convection due to cooler air.

On August 20, Felix weakened below hurricane intensity for the first time in nine days, due to cooler waters and increased wind shear.

A tropical storm watch was later issued for Bermuda on August 19 late in Felix's duration when it was drifting offshore the eastern United States.

[1] The threat of the storm caused officials to issue evacuation orders for the Outer Banks of North Carolina, and about 200,000 people left the island chain,[12] including 125,000 in Dare County.

[17] The United States Navy moved ships from Norfolk Naval Base to open waters to prevent damage along the docks from the high waves.

[20] The storm also destroyed a few fishing boats and damaged hotels along the island's southern shore,[11] where prolonged high surf caused considerable beach erosion.

[1] While offshore the eastern United States, Hurricane Felix generated strong waves and rip currents that caused widespread coastal flooding and beach erosion,[1] reaching as far south as Georgia and as far north as Maine.

[23] Beaches along the Outer Banks and Virginia were closed for several days,[15] and about 200 people required rescue in New Hanover County, North Carolina.

[15] As Hurricane Felix was looping offshore the eastern United States, it produced swells of 26 ft (8 m) along the Nova Scotia coast on an otherwise sunny day.