Bitcoin News Today: Bitcoin drops below $116,000 amid macroeconomic pressures and bearish momentum signals

Bitcoin experienced a sharp intraday correction on July 28, 2025, dipping below the $116,000 level—the largest hourly pullback in two weeks—raising concerns about a potential further decline toward the $114,000 support zone. The move was driven by macroeconomic uncertainties and shifting sentiment in the broader market, with institutional activity, including significant BTC transfers by Galaxy Digital, amplifying the volatility. The pullback underscores the growing sensitivity of crypto markets to central bank policies and macroeconomic signals, particularly from the Federal Reserve [1].

The correction followed a period of strong momentum for Bitcoin, which had previously traded near multi-month highs. The sudden shift in sentiment prompted investors to take profits and reassess risk exposure. The bearish trend extended beyond Bitcoin, with altcoins such as Ethereum and Solana also experiencing declines of 1.74% and 1.90%, respectively [2]. This broad-based selloff reflects deepening caution among market participants, particularly as key technical indicators show weakening bullish momentum. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) suggest that the market remains in a bearish phase, with limited conviction among speculative traders [2].

Market participants are closely watching the upcoming U.S. interest rate decision and broader economic developments, as these events could influence the trajectory of Bitcoin and other digital assets. Jerome Powell, Chair of the Federal Reserve, highlighted the ongoing impact of tariff inflation, though no immediate rate changes were signaled [1]. These policy signals continue to shape investor behavior across asset classes, with cryptocurrencies often reacting more acutely to macroeconomic shifts. A sustained decline below $114,000 could lead to further pressure, testing the resilience of Bitcoin and complicating near-term recovery prospects.

Despite the bearish near-term outlook, some analysts note historical patterns where sharp corrections have been followed by rebounds as market conditions stabilize. However, current data, including falling futures open interest and declining funding rates, indicate that speculative positioning remains weak [2]. As the market digests the latest macroeconomic developments, the coming days will be critical in determining whether Bitcoin can stabilize or if the downward trend gains further momentum.

Source: [1] Modern Finance Online (https://www.modernfinanceonline.com)

[2] Crypto (https://cryptonews.net/news/analytics/31349163/)