Weakened interest rate cut expectations hit risk appetite, Bitcoin falls to a two-week low

Zhitong
2025.07.25 08:50
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Due to weakened investor expectations for a Federal Reserve interest rate cut, Bitcoin fell to $115,100, the lowest level in two weeks. Ethereum and Ripple also experienced declines. Although the overall upward trend remains, market sentiment has turned cautious. The number of initial jobless claims in the U.S. unexpectedly decreased, indicating stability in the labor market, which may influence the Federal Reserve's policy. Bearish sentiment is evident in the derivatives market, and analysts expect Bitcoin prices to continue consolidating

According to Zhitong Finance APP, due to weakened investor expectations for a Federal Reserve interest rate cut, cryptocurrencies such as Bitcoin have all declined. Bitcoin fell to $115,100, the lowest level since July 11. Meanwhile, Ethereum dropped about 2%, and Ripple fell over 5%.

Bitcoin rose to a historic high of $123,200 last week, continuing a steady upward trend driven by optimistic expectations regarding improvements in the U.S. regulatory environment and significant capital inflows into crypto investment products. However, Rachael Lucas, an analyst at the cryptocurrency trading platform BTC Markets, stated, "Although the overall upward trend remains intact, momentum has weakened, and traders have become more cautious."

Data released on Thursday showed that the number of initial jobless claims in the U.S. for the week ending July 19 was 217,000, marking a decline for the sixth consecutive week and remaining at the lowest level since mid-April, below the market expectation of 226,000 and the previous value of 221,000. Additionally, the number of continuing jobless claims for the week ending July 19 slightly decreased to 1.955 million, below the market expectation of 1.96 million and the previous value of 1.956 million. Despite weak hiring making it difficult for many laid-off workers to find new opportunities, the unexpected decline in initial jobless claims last week indicates that the labor market remains stable. Better-than-expected employment data also provides a reason for the Federal Reserve to continue to act cautiously.

Furthermore, bearish sentiment in the market is also reflected in the derivatives market. According to major brokerage FalconX, an unidentified speculator paid approximately $5 million in option premiums on the Deribit exchange to purchase a batch of Bitcoin put options with a strike price of $110,000, expiring on August 8.

Tony Sycamore, an analyst at IG Australia, stated, "We expect Bitcoin prices to continue to consolidate before reaching the monthly trend line resistance level, which is currently below about $125,000." He noted that this trend line was the key technical level that prevented Bitcoin from continuing to rise last week