Bitcoin News Today: Bitcoin Falls to $114,762 as Fed Rate Cut Optimism Fades

Bitcoin’s price retreated sharply amid fading optimism for near-term U.S. Federal Reserve rate cuts, weighing on risk assets and cryptocurrency markets. The digital asset fell to a low of $114,762 on Friday, the weakest level since July 11, as investors recalibrated expectations for 2025 monetary policy. Ether, the second-largest token by market capitalization, remained broadly flat, while XRP declined approximately 3% during the session [1]. The sell-off mirrored broader market trends, with equities and other high-risk assets also declining as central bank signals shifted toward maintaining current interest rates [4].

The downturn followed stronger-than-expected U.S. jobs data released earlier in the week, which dimmed prospects for aggressive Fed easing. “The broader uptrend remains intact, but momentum has cooled and traders are cautious,” noted Rachael Lucas, a crypto analyst at BTC Markets [1]. The U.S. central bank’s recent communications signaled a higher likelihood of rate stability through 2025, countering earlier speculation about potential reductions this year [4]. This recalibration triggered a seven-day Asian stock rally’s reversal and intensified pressure on crypto markets [1].

Analysts characterized the correction as a necessary adjustment after Bitcoin surged to an all-time high of $123,205 earlier in July, driven by optimism around regulatory developments and inflows into crypto investment products [1]. Alex Kuptsikevich, chief market analyst at FxPro, described the decline as a “healthy and necessary correction,” noting that even a pullback to $3.4 trillion in total crypto value—down from a July peak above $4 trillion—would still reflect profit-taking rather than a bearish reversal [1]. “As long as the market remains above this level, there is no point in talking about a change in the medium-term trend,” he added [1].

Technical indicators further highlighted vulnerabilities in Bitcoin’s price action. An unidentified trader spent approximately $5 million in premium to purchase put options on Deribit, betting Bitcoin would fall below $110,000 by August 8, according to FalconX data [1]. Meanwhile, a large-scale sell-off by Galaxy Digital—estimated at 10,000 to 15,000 coins over three days—exacerbated downward pressure, pushing prices further from recent peaks [6]. The BTC/JPY pair also formed a descending triangle pattern at record highs, signaling cautious positioning amid mixed economic signals [7].

Market participants emphasized that long-term bulls remain focused on potential 2026 rate cuts, but near-term volatility will persist as inflation data and Fed communication dictate short-term trajectories. “The market is pricing in delayed easing, which means Bitcoin’s near-term direction hinges heavily on inflation and employment reports,” said one analyst [5]. However, institutional investors have yet to demonstrate significant buying interest during the correction, contrasting with prior cycles where fund inflows supported crypto prices amid dips [1].

Despite historical resilience to macroeconomic shifts, Bitcoin remains sensitive to liquidity conditions and investor sentiment, with rate cut expectations a key variable in its valuation model [4]. Traders speculated that renewed buying pressure could emerge if Fed officials signal a pivot in late 2025, but such outcomes depend on evolving inflation trends and employment data [7]. As Bitcoin consolidates below the $125,000 monthly trendline—a level that previously capped its advance—analysts like Tony Sycamore of IG Australia anticipate further sideways movement until clearer policy signals emerge [1].

Source:

[1] [Bitcoin Slides as Fed Rate Cut Hopes Diminish](https://www.bloomberg.com/news/articles/2025-07-25/bitcoin-slides-as-fed-rate-cut-hopes-diminish)

[4] [Bitcoin slides as Fed rate cut hopes diminish](https://theedgemalaysia.com/node/764057)

[5] [Bitcoin Slides as Fed Rate Cut Hopes Diminish](https://www.reddit.com/r/Seneweb/comments/1m8tcnt/bitcoin_slides_as_fed_rate_cut_hopes_diminish/)

[6] [Bitcoin Slides Amid Galaxy Digital Sell-Off From $9.6...](https://www.mitrade.com/insights/news/live-news/article-3-987039-20250725)

[7] [Focus on Bitcoin-Yen's 'Descending Triangle' as Fed Rate...](https://www.coindesk.com/markets/2025/07/24/focus-on-bitcoin-yen-s-descending-triangle-as-fed-rate-cut-bets-rise)