Bitcoin News Today: Bitcoin Falls 2.1% as Weak Jobs Data Spur Fed Rate Cut Speculation

Bitcoin prices faced downward pressure in late July 2025 as traders recalibrated expectations around U.S. economic conditions and Federal Reserve policy moves. The cryptocurrency market reacted sharply to a weaker-than-expected U.S. jobs report, which showed only 73,000 new jobs added in July, significantly below forecasts. This, along with revised downward data for May and June showing a combined loss of 258,000 jobs, fueled growing confidence that the Fed may reduce interest rates soon [1].

Bitcoin dropped 2.1% to approximately $115,500 in the wake of the disappointing labor data, with Ethereum, XRP, and Solana also experiencing notable declines [1]. The broader market reflected heightened uncertainty, with traditional indices such as the S&P 500 and Nasdaq also falling. These movements underscored the interconnectedness of global financial markets and the sensitivity of risk assets like crypto to macroeconomic signals [1].

Although Federal Reserve Chair Jerome Powell did not commit to immediate rate cuts, trader sentiment shifted rapidly after the jobs report. The probability of a rate cut at the next Fed meeting surged to 78%, up from 37% previously [1]. Crypto analyst Matt Mena from 21Shares noted that increased liquidity from potential rate cuts could provide a strong tailwind for cryptocurrencies, potentially pushing Bitcoin toward $125,000 if policy easing is confirmed [1].

Meanwhile, new U.S. tariffs announced by the White House added to the market's unease. Tariffs on imports from over 60 countries increased, with Canadian imports facing a hike to 35% and Brazil up to 50%. Despite some trade agreements with Mexico and Canada offering exemptions, the broader trade environment remained uncertain. The administration’s openness to negotiations, including with China, added another layer of complexity to market dynamics, contributing to volatility in both traditional and crypto markets [1].

The combination of macroeconomic uncertainty, trade tensions, and evolving Fed expectations has created a mixed environment for cryptocurrencies. While the short-term price corrections reflect investor caution, the potential for increased liquidity in the event of rate cuts could offer a path for recovery and growth. Market participants are closely monitoring upcoming economic data and policy developments to better position their portfolios amid this evolving landscape [1].

Source: [1] Bitcoin Price Faces Pressure Amid Fed Rate Cut Speculation and Trade Policy Uncertainty (https://en.coinotag.com/bitcoin-price-faces-pressure-amid-fed-rate-cut-speculation-and-trade-policy-uncertainty/)