Bitcoin has retreated as much as 7% since its 14 July peak as capital rotated into alternative cryptocurrencies and in the absence of a compelling reason to invest.
Bitcoin Trades 7% Below Record High as Investors Lack Compelling Buy Signal
25 July 2025 - 16:39 CEST
"Wait and see"
The European Central Bank kept interest rates unchanged this week and suggested that its “wait and see” approach would continue while the economy remained resilient. Traders may now be waiting for the next US Federal Reserve meetings on 29-30 July before committing their capital to more adventurous new trades.
Friday fall
Bitcoin fell 2.5% to $115,455 on Friday as at 14:32 UTC having briefly dipped below $115,000. The CoinMarketCap 100 Index, which tracks the top 100 cryptocurrency projects excluding stablecoins and asset-backed wrapper tokens, lost 1.4% over the past 24 hours.
President Trump’s inconsistent trade tariff communications and the inflationary risk attached to levies on US trade have disrupted the Fed’s usual approach to maintaining financial stability and keeping consumer prices in check. The central bank is also the subject of political interference from the White House, which has encouraged the Fed Chair Jerome Powell to resign his post.
Fewer jobless claims
Equities posted modest gains mid-week amid reports that the EU and the US might be close to a deal for a 15% tariff instead of the 30% threatened by Trump earlier this month. Meanwhile, the yield on US Treasuries widened after Thursday's US jobless claims report showed fewer applicants for unemployment benefits – a positive sign for those in work, although unlikely to prompt the interest rate cut the market seems to be holding out for.
