Bitcoin slips as strong jobs data dims Fed rate cut hopes

[Closeup of bitcoin coin in a shopping cart with euro coins. BTC coin with dark background.]
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Bitcoin (BTC-USD [https://seekingalpha.com/symbol/BTC-USD]) fell on Friday, tracking a broader pullback in risk assets as fading expectations of U.S. interest rate cuts dampened investor sentiment.

The world’s largest cryptocurrency dropped to $115,122, marking its lowest level since July 11. Ether (ETH-USD [https://seekingalpha.com/symbol/ETH-USD]) slipped about 3%, while XRP (XRP-USD [https://seekingalpha.com/symbol/XRP-USD]) declined 5.3%.

Bitcoin reached a new all-time high of $123,205 last week, extending its upward momentum amid growing optimism around the U.S. regulatory landscape and robust inflows into crypto investment products.

Stronger-than-expected U.S. jobs data on Thursday dampened hopes for near-term Federal Reserve rate cuts, ending a seven-day rally in Asian equities and putting pressure on cryptocurrencies. The shift in sentiment was also reflected in the derivatives market, where a large bearish bet emerged.

According to prime broker FalconX, an unidentified trader paid approximately $5 million in premiums on the Deribit exchange to purchase Bitcoin put options expiring August 8, with a strike price of $110,000. The size and timing of the trade highlight growing caution among investors as macro uncertainty mounts.

Crypto stocks in red premarket: MicroStrategy (MSTR [https://seekingalpha.com/symbol/MSTR]) -2.4%, CleanSpark (CLSK [https://seekingalpha.com/symbol/CLSK]) -2.6%, Hut 8 (HUT [https://seekingalpha.com/symbol/HUT]) -3%, Coinbase Global (COIN [https://seekingalpha.com/symbol/COIN]) -3%, Riot Platforms (RIOT [https://seekingalpha.com/symbol/RIOT]) -3%, MARA Holdings (MARA [https://seekingalpha.com/symbol/MARA]) -2.9%, Bit Digital (BTBT [https://seekingalpha.com/symbol/BTBT]) -1.2%, Greenidge Generation (GREE [https://seekingalpha.com/symbol/GREE]) -0.5%, Bitfarms (BITF [https://seekingalpha.com/symbol/BITF]) -2.4%, Galaxy Digital (OTCPK:BRPHF [https://seekingalpha.com/symbol/BRPHF]) -2.2%.

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