Bitcoin Slips as Rate Cut Hopes Fade

Bitcoin Slips as Rate Cut Hopes Fade

Bitcoin declined Friday alongside broader risk assets as fading hopes for U.S. interest rate cuts dampened investor sentiment. Risk appetite remained muted following Galaxy Digital’s sale of over 10,000 BTC on Thursday, worth more than $1 billion, spread across multiple exchanges.

Stronger-than-expected U.S. jobs data on Thursday further eroded Fed cut expectations, ending a seven-day rally in Asian equities and adding pressure to crypto markets. The large BTC transfer triggered price volatility and profit-taking, causing Bitcoin to drop 2.45%, from around $118,500 to $115,134.

In derivatives, a trader paid nearly $5 million in premiums on Tuesday to purchase Bitcoin put options expiring Aug. 8 with a $110,000 strike, signaling downside hedging activity, according to FalconX.

Altcoins Underperform Amid Liquidations

Altcoins fared worse. XRP tested the $3 support level, while Solana and Dogecoin dropped 2.8% and 2.5%, respectively, over the past 24 hours. Liquidations hit hard: Solana saw $47.73 million in wiped-out positions, XRP $42.15 million, and Dogecoin $27.41 million.

ETF Flows and Institutional Moves

On July 24:

· Spot Bitcoin ETFs attracted $226.7 million in inflows.

· Spot Ethereum ETFs saw $231.2 million.

· Staked SOL ETFs added $13.4 million.

Tokyo-listed AI firm Quantum Solutions announced plans to accumulate up to 3,000 BTC over the next year.

Altcoin Highlights

· BNB rose 2% to $762 after Windtree Therapeutics revealed a $520M fundraise to acquire the token.

· TON dipped 0.5% to $3.07 despite a $400M fund raise led by TON Foundation and Kingsway Capital.

· TRX surged 4% to $0.3141 following Justin Sun’s celebration of Tron’s reverse merger with SRM Entertainment at the Nasdaq.

· Bitcoin Cash (BCH) rallied 6% to $525 on growing institutional interest.

· XRP edged down 1% to $3.05 despite the launch of the XRP Earn Account by MoreMarkets.

· NEAR slid over 2% to $2.66, even after unveiling cross-chain stablecoin infrastructure plans with Evercle.

· Meanwhile, Tether’s $2B USDT mint sits idle, but history shows such issuances typically enter markets soon—potentially triggering rallies. However, the pace of that activation remains unclear.

Market Outlook

Bitcoin’s pullback, coupled with macro uncertainty and Ethereum validator exits, points to heightened volatility ahead. Leverage remains elevated in altcoins. Until risk-on flows return, cautious positioning is advisable. A USDT-driven bounce could materialize—but timing is key. For now, prudence outweighs conviction.

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