Bitcoin News Today: Bitcoin Falls 6.6% Amid Fed Uncertainty and Rising On-Chain Selling Pressure

Bitcoin is under renewed downward pressure as macroeconomic signals and shifting expectations around U.S. monetary policy create a climate of uncertainty for the digital asset. The world’s largest cryptocurrency has fallen below $116,000, having previously traded near $118,000 just hours earlier. The drop comes amid growing concerns over the Federal Reserve’s rate outlook, rising interest rates, and the potential economic impacts of U.S. tariff policies. On-chain data also shows that over 7.9% of Bitcoin’s supply is currently held at a loss, increasing short-term selling pressure [2].

The recent correction has been the largest in two weeks, with Bitcoin closing the week nearly 6.6% below its recent record high of $123,128 [6]. The decline follows a sharp hourly price drop and has been exacerbated by profit-taking after a recent rally, as well as uncertainty ahead of the Fed’s next policy decision [3]. The cryptocurrency’s performance has outpaced broader market weakness, with Bitcoin falling almost 7% during the same period the S&P 500 declined by approximately 3% [7], highlighting the sector’s heightened sensitivity to macroeconomic volatility.

Analysts note that slowing institutional demand for Bitcoin spot ETFs and aggressive selling in recent sessions have contributed to the downward momentum. Ethereum, while more stable, is also facing downward pressure, though it remains supported near $3,800 due to consistent demand for spot ETFs [9]. However, the RSI for Ethereum is currently at 74, signaling overbought conditions and raising the likelihood of a short-term pullback [10].

For Bitcoin, the RSI stands at 58, indicating a bearish trend and decreasing buying interest. A bearish signal from the MACD indicator, which has remained negative since mid-week [9], further suggests downward momentum. Should macroeconomic uncertainty persist, further selling pressure could push Bitcoin toward key support levels, including $116,000 and the 50-day EMA at $112,736 [10].

The broader cryptocurrency market is also feeling the ripple effects, with XRP showing signs of bearish momentum as the MACD indicator remains negative and its RSI moves toward neutral territory [9]. The next few days are expected to be critical as investors focus on key U.S. economic data and the Fed’s upcoming policy decisions. A dovish stance could offer short-term relief for risk assets, but prolonged macroeconomic uncertainty may continue to weigh on sentiment.

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[1]title1: Bitcoin price: World's top cryptocurrency tanks and these could be the reasons (https://m.economictimes.com/news/international/us/bitcoin-price-worlds-top-cryptocurrency-tanks-and-these-could-be-the-reasons/articleshow/123041828.cms)

[2]title2: Bitcoin News Today: Bitcoin Price Faces Downward Risk as 7.9% Supply Held at a Loss (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-price-faces-downward-risk-7-9-supply-held-loss-2508/)

[3]title3: Bitcoin drops 3% to below $115000 on tariff concerns (https://www.economies.com/crypto/news/bitcoin-drops-3-to-below-$115,000-on-tariff-concerns-47011)

[6]title6: Bitcoin price has extended its decline by 6.6% so far from the record high of $123,128 (https://www.mitrade.com/insights/news/live-news/article-3-1005308-20250801)

[7]title7: Bitcoin News Today: Bitcoin Fills July CME Gap at $114,322 as Market Downturn Focuses on $116,000 Resistance (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-fills-july-cme-gap-114322-market-downturn-116000-resistance-focus-2508/)

[9]title9: Crypto Today: Bitcoin, Ethereum, XRP steady as traders brace for key US macro events (https://www.fxstreet.com/cryptocurrencies/news/crypto-today-bitcoin-ethereum-xrp-steady-as-traders-brace-for-key-us-macro-events-202507301200)

[10]title10: Bitcoin Surprises With Historic Highs: Will It Maintain Momentum? (https://m.fastbull.com/news-detail/bitcoin-surprises-with-historic-highs-will-it-maintain-4337962_0)