Bitcoin Drops 4.7% to $117,200 as Miners Sell Holdings

Bitcoin miners have been actively booking profits as the price of Bitcoin (BTC) reached $123,000, sparking concerns about a potential sell-off in the market. The sudden increase in the Bitcoin Miners' Position Index (MPI) has raised alarms, as the index surpassed 2, indicating that miners are selling their holdings. This selling pressure has led to a significant correction in the BTC price, which has dropped below $120,000.

The sell-off has been intensified by a shift in investor sentiment and profit-taking activities, particularly among larger whales. Exchange netflow data supports the MPI reading, showing substantial outflows from miner wallets to exchanges. For example, a Satoshi-era Bitcoin wallet transferred 9,000 BTC on July 14, followed by another 7,843 BTC on July 15, 2025. These transfers, totaling nearly $2 billion worth of tokens, were sent to major exchanges, creating strong sell-side pressure.

The market correction was also influenced by key economic events, such as the release of US economic data, including the Consumer Price Index (CPI) and Producer Price Index (PPI). These events contributed to the overall market sentiment, leading to a plunge in BTC below the $118,000 support level. Currently, BTC is trading at $117,200 with a market capitalization of $2.33 trillion. The liquidation of nearly $400 million in long positions within four hours further intensified the sell-off.

Technical indicators also suggest that the rally had extended for too long, pushing the token into overbought territory. The Moving Average Convergence Divergence (MACD) showed a bullish crossover but with slowing momentum. Additionally, there are signs of investor fatigue and disbelief, leading to profit-taking and a subsequent crash.

The Altcoin Seasons Index surged nearly 45% over the week, indicating a shift in investor sentiment towards altcoins. This capital rotation from BTC to other digital assets has contributed to the decline in Bitcoin's price. Bitcoin dominance has also decreased from a June high of 65.1% to 63.5%, confirming the shift in capital. However, experts suggest that this is more of a mini-season rather than a full-blown altcoin season.

Overall, the whale sell-off and leverage unloading have resulted in the current market correction. Experts view this as a pullback to fill the CME gap between $115,635 and $114,380 before igniting another massive rally. The market is now awaiting better entry points as investors reassess their positions in light of the recent price movements.