Bitcoin News Today: Bitcoin Dips 2.72% to 2025 Low as Strong Jobs Data Deters Fed Rate Cuts

Bitcoin fell to its lowest level since July 11, 2025, as U.S. employment data fueled doubts about the Federal Reserve’s willingness to cut interest rates soon. The cryptocurrency dropped to $115,122 on July 23, 2025, marking a 2.72% decline, driven by a stronger-than-expected jobs report that revised downward market expectations for rate cuts this year. The report highlighted 235,000 nonfarm payrolls added in June and a 3.7% unemployment rate, signaling a resilient labor market and reinforcing the Fed’s stance on maintaining “higher for longer” rates [1]. This shift in sentiment pushed Bitcoin to a seven-day low and mirrored broader market selloffs, with risk assets like equities and gold also underperforming [2].

The Federal Reserve’s July 30–31 policy meeting is now widely seen as unlikely to deliver a rate cut, with traders pricing in less than a 10% chance of a reduction per the CME FedWatch tool. The data underscored the central bank’s focus on inflation control, even as softer economic indicators in other sectors had previously spurred rate-cut speculation. Analysts noted that the report aligns with the Fed’s dual mandate of employment and price stability, removing the narrative of a “soft landing” in the economy [5].

Bitcoin’s volatility reflects its growing sensitivity to macroeconomic signals. While traditionally viewed as a hedge against inflation, the asset’s recent performance highlights its entanglement with Fed policy expectations. Traders are now shifting attention to the September meeting, where the CME FedWatch tool shows a 58% probability of a rate cut. However, the July jobs report has pushed this timeline back, creating short-term uncertainty for risk-on markets [3].

The broader financial landscape saw mixed reactions. Equity indices like the S&P 500 and Nasdaq composite declined as investors recalibrated for a prolonged high-rate environment. Gold, which had surged earlier in the year on rate-cut hopes, retreated by 1.2% in Asian trading. U.S. Treasury yields climbed to a five-week high, reflecting renewed confidence in sustained tight monetary policy [4].

Analysts emphasized that the jobs report’s impact extended beyond rate-cut timing. Vishal Goenka, a U.S. bond market analyst, stated the data “removes the narrative of a soft landing” and underscores the Fed’s credibility in managing inflation, which could stabilize long-term investment flows. However, prolonged high rates risk stifling growth in credit-dependent sectors, leaving investors in a holding pattern [5].

Market participants are now closely monitoring upcoming economic indicators, particularly the August inflation report, which could reignite rate-cut speculation if price growth slows. Until then, Bitcoin and other crypto assets are likely to remain volatile, reflecting the tug-of-war between macroeconomic realities and investor sentiment [2].

Source:

[1] ["Latest Cryptocurrency & Bitcoin (BTC) News" (Seeking Alpha)](https://seekingalpha.com/market-news/crypto)

[2] ["Stock Market LIVE Updates: Sensex falls over 600 pts, Nifty..." (The Economic Times)](https://m.economictimes.com/markets/stocks/live-blog/bse-sensex-today-live-nifty-stock-market-updates-25-july-2025/liveblog/122892310.cms)

[3] ["Wall St stumbles after report of Trump mulling major tariffs..." (AOL.com)](https://www.aol.com/news/wall-st-futures-edge-optimism-101415807.html)

[4] ["Oil prices rise as trade deals take centre stage" (Yahoo.co)](https://sg.finance.yahoo.com/news/oil-prices-gold-pound-083509116.html)

[5] ["US Treasury pullback from long-term bonds signals policy..." (The Economic Times)](https://m.economictimes.com/markets/bonds/us-treasury-pullback-from-long-term-bonds-signals-policy-divergence-says-vishal-goenka/articleshow/122863318.cms)