Bitcoin declined on Friday, falling in line with other high-risk assets as expectations for a U.S. Federal Reserve rate cut next week diminished.
The cryptocurrency slid to $115,122, marking its lowest level since 11 July. This follows last week’s record high of $123,205, fuelled by optimism over a more favourable U.S. regulatory climate and increased demand for crypto investment products.
Despite the recent pullback, Bitcoin remains up 24% year-to-date against the U.S. dollar.
However, sentiment shifted sharply on Thursday after stronger-than-expected U.S. jobs data dented hopes for near-term Federal Reserve rate cuts. The data halted a seven-day rally in Asian equities and added pressure to risk assets, including cryptocurrencies.
The cautious tone extended to the derivatives market, where a major bearish bet signalled rising investor anxiety. According to prime broker FalconX, an unidentified trader spent around $5 million in premiums on Bitcoin put options via the Deribit exchange. The options, which expire on 8 August, carry a strike price of $110,000, indicating expectations of a potential pullback.
Crypto-related equities also moved lower in premarket trading:
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MicroStrategy (MSTR) –2.4%
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CleanSpark (CLSK) –2.6%
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Hut 8 (HUT) –3%
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Coinbase (COIN) –3%
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Riot Platforms (RIOT) –3%
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Marathon Digital (MARA) –2.9%
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Bit Digital (BTBT) –1.2%
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Greenidge Generation (GREE) –0.5%
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Bitfarms (BITF) –2.4%
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Galaxy Digital (BRPHF) –2.2%
Traders have pulled back on expectations for 2026 Federal Reserve rate cuts, reflecting mounting concerns over persistent inflation and a potentially longer tightening cycle. This shift has drained momentum from Bitcoin, which is now struggling to clear key resistance levels amid weaker ETF inflows and fragile spot price action.
In the near term, the market faces a critical test. A swift move to fill the CME futures gap could trigger a spike in volatility, while a more measured correction may open the door for long-term investors to accumulate at lower levels.
The crypto market’s heightened sensitivity to macroeconomic developments highlights its deepening ties to traditional finance. With Bitcoin approaching key support zones, the coming days will reveal whether the market can absorb the uncertainty or succumb to renewed selling pressure.
The bearish shift comes amid rising macro uncertainty, as traders reassess risk exposure heading into the next Fed meeting.
