Bitcoin News Today: Bitcoin drops 0.8% as Fed rate decision and trade uncertainty weigh on sentiment

Bitcoin's price declined slightly ahead of the Federal Reserve’s key interest-rate decision, as uncertainty over potential policy shifts and trade developments dampened investor sentiment. On July 24, 2025, Bitcoin fell 0.8% to $117,911.30 amid heightened caution among traders, who were closely watching for signals on whether the Fed would maintain the status quo or hint at future tightening [1]. Over the previous two weeks, the cryptocurrency had been trading in a narrow range between $116,000 and $120,000, reflecting mixed market sentiment and indecision among investors [5].

Earlier in the week on July 10, the price had dipped below $118,000, raising concerns about a potential further sell-off, particularly if institutional investors continued to take profits after a period of consolidation [2]. CoinDesk data from July 27 indicated that Bitcoin had fallen 0.5% over the previous 24 hours to $118,226, highlighting the persistent fragility in the market ahead of the Fed’s decision [4]. This decline was seen in the broader context of a global market environment marked by economic uncertainty, geopolitical tensions, and a cautious approach by major investors.

The U.S. labor market, a key factor in the Fed’s decision-making, showed signs of moderation. The June JOLTS report revealed a drop in job openings to 7.4 million, with the hiring rate hitting a seven-month low at 3.3% [9]. While the unemployment rate was expected to rise slightly to 4.2%, this would likely be interpreted by the market as a sign of a balanced labor market, rather than one showing signs of overheating [7]. The labor data, combined with the upcoming Fed decision, contributed to a risk-off environment, with investors seeking safer assets and avoiding positions that could be vulnerable to monetary tightening.

Ongoing trade negotiations between the U.S. and China added to the uncertainty. The absence of an announced extension to the tariff truce left markets exposed to the risk of renewed tariffs, which could further weigh on global economic growth and investor sentiment [3]. President Trump was expected to make a final decision by late July, with analysts noting that the outcome could have a direct impact on market volatility in both traditional and crypto markets [1].

Bitcoin’s price action in July reflected these macroeconomic concerns. Despite several attempts to break out of its trading range, the price remained constrained, with retail investor enthusiasm appearing to mask deeper institutional caution [3]. Analysts from Barclays noted that while there were pockets of optimism, the broader market environment suggested a preference for risk reduction as major economic decisions approached [3].

The cryptocurrency’s performance was also influenced by broader equity market trends. The S&P 500 ended a six-day record streak on July 23, breaking under pressure from mixed earnings reports and rising geopolitical risks [3]. The Nasdaq and Dow also declined, reflecting a broader pullback in risk appetite. These movements underscored the interconnected nature of global markets, where shifts in equities could reverberate into crypto assets, particularly those like Bitcoin that are sensitive to macroeconomic cycles.

Despite the near-term challenges, Bitcoin remained in a technical range that suggested limited directional momentum. Traders and investors continued to monitor the Fed’s policy path, as well as the outcome of trade negotiations, for potential turning points. With the central bank’s rate decision expected shortly after midday on July 24, the coming days would be crucial in determining whether Bitcoin could stabilize or face further downward pressure.

As the market prepared for the Fed’s announcement, the broader cryptocurrency ecosystem remained in a state of watchful anticipation. The outcome of the central bank’s meeting could provide clarity on inflation expectations and the future of monetary policy, which in turn would shape investor behavior across both traditional and digital asset classes [4]. Given the current volatility and uncertainty, Bitcoin’s near-term trajectory was likely to remain closely tied to macroeconomic developments and policy signals from Washington.

Source:

[1] Bitcoin falls to $117.9K amid Fed and tariff uncertainty (https://www.mitrade.com/au/insights/crypto/bitcoin/bitcoin-20250730)

[2] Weekly On-chain Update: Why Bitcoin risks sell-off to $112 (https://www.mitrade.com/au/insights/news/live-news/article-3-995133-20250730)

[3] Bitcoin price today: falls as risk appetite drifts ahead of Fed decision (https://www.investing.com/news/economy-news/trump-pushes-rate-cut-as-fed-meets-second-quarter-data-released-4159972)

[4] Bitcoin USD (BTC-USD) latest stock news and headlines (https://nz.finance.yahoo.com/quote/BTC-USD/news/)

[5] USD/CHF drifts lower to near 0.8050 as traders brace for ... (https://www.fxstreet.com/news/usd-chf-drifts-lower-to-near-08050-as-traders-brace-for-fed-rate-decision-202507300521)

[7] July jobs preview (https://www.proactiveinvestors.com/companies/news/1075641/s-p-500-snaps-record-run-as-wall-street-slips-ahead-of-fed-decision-1075641.html)