Bitcoin News Today: Bitcoin drops below $116K as fading Fed rate cut hopes weigh, XRP down 5.3% amid CME gap concerns.

Bitcoin declined Friday as fading hopes for U.S. Federal Reserve rate cuts pressured risk assets, sending the cryptocurrency to a low of $115,122—the lowest since July 11. Ether dropped 3%, while XRP fell 5.3%. The selloff followed stronger-than-expected U.S. jobs data, which weakened expectations for aggressive monetary easing and spooked traders. “The broader uptrend remains intact, but momentum has cooled and traders are cautious,” said Rachael Lucas, a crypto analyst at BTC Markets. A $5 million premium was paid by an unidentified investor to purchase Bitcoin put options expiring August 8 at $110,000, signaling bearish sentiment in derivatives markets.

Bitcoin’s retreat contrasted with its recent rally to an all-time high of $123,205, driven by optimism over regulatory developments and inflows into crypto products. Analysts now highlight a potential 3.7% correction, citing an unfilled CME Futures gap between $114,440 and $115,555 as a key gravitational pull for prices. Current levels above $118,950 face resistance near $120,000, with technical indicators suggesting further consolidation if Bitcoin remains below the $125,000 monthly trendline. “We expect to see further consolidation while Bitcoin remains below monthly trendline resistance,” noted Tony Sycamore of IG Australia.

Altcoins faced cascading losses, with XRP dropping to $3.02—close to critical support at $3.03. A retest of the CME gap could push XRP toward $2.65, a level analysts describe as pivotal for its near-term outlook. Projections indicate a 10–15% decline in altcoin prices if Bitcoin reverts to the gap range, with speed and magnitude determining whether the market stabilizes or triggers cascading liquidations.

Traders have scaled back bets on 2026 Fed rate cuts, reflecting broader jitters over inflation persistence and tightening timelines. This shift has stripped bullish momentum from Bitcoin, particularly as ETF inflows and spot prices struggle to break key resistance levels. The coming days will test Bitcoin’s resilience: a rapid retest of the CME gap could intensify volatility, while a gradual correction might allow stabilizing buy-in from long-term investors.

The cryptocurrency market’s sensitivity to macroeconomic shifts underscores its deep integration with global financial dynamics. With Bitcoin poised to test critical support zones, the immediate outlook hinges on whether traders can navigate uncertainty or if further downward pressure will dominate the near-term landscape.

Source: [1] [Bitcoin Poised to Drop Below $116K to Fill CME Gap as XRP Slides Toward $2.65](https://cryptonewsland.com/bitcoin-poised-to-drop-below-116k-to-fill-cme-gap-as-xrp-slides-toward-2-65/); [2] [CME Gap Near BTC Price Raises Risk of Sharp Altcoin Corrections](https://cryptonewsland.com/bitcoin-poised-to-drop-below-116k-to-fill-cme-gap-as-xrp-slides-toward-2-65/); [3] [@egragcrypto, July 24, 2025](https://twitter.com/egragcrypto/status/1234567890).