Cryptocurrencies including Bitcoin fell as investor expectations for a rate cut from the Federal Reserve weakened. Bitcoin fell to $115,100, its lowest level since July 11. At the same time, Ethereum fell by about 2% and Ripple fell by more than 5%.
Bitcoin rose to an all-time high of $123,200 last week, continuing a steady upward trend driven by optimism about an improving U.S. regulatory environment and massive inflows into crypto investment products. However, Rachael Lucas, an analyst at cryptocurrency trading platform BTC Markets, said: “While the overall upward trend remains intact, momentum has weakened and traders have become more cautious.”
Data released on Thursday showed that the number of people filing for unemployment benefits in the United States for the week ended July 19 was 217,000, falling for the sixth consecutive week and still the lowest level since mid-April, lower than market expectations of 226,000 and the previous value of 221,000. In addition, the number of people filing for unemployment benefits in the United States fell slightly to 1.955 million in the week ended July 19, which was lower than market expectations of 1.96 million and the previous value of 1.956 million. Although weak hiring has made it difficult for many laid-off workers to find new opportunities, the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, indicating that labor market conditions remain stable. Better-than-expected employment data also provided reason for the Fed to continue to act cautiously.
In addition, the market's bearish sentiment is also reflected in the derivatives market. According to prime broker FalconX, an unidentified speculator paid approximately $5 million in option premiums on the Deribit exchange to purchase a batch of Bitcoin put options expiring on August 8 with a strike price of $110,000.
IG Australia analyst Tony Sycamore said: “We expect Bitcoin prices to continue to consolidate before remaining below the current monthly trend line resistance of approximately $125,000.” He said that this trend line was the key technical level that prevented Bitcoin from continuing to rise last week.
