Bitcoin News Today: Bitcoin Drops 1.44% Below $118,000 as Whale Activity Sparks Sell-Off

Bitcoin’s price dipped below $118,000 on July 28, 2025, driven by significant whale activity, triggering a 1.44% decline within 24 hours and amplifying market volatility. Large transfers from early Bitcoin holders—often termed “Satoshi-era whales”—disrupted supply dynamics, prompting short-term sell-offs and uncertainty. The price settled at $117,985.30, a level that reflects heightened sensitivity to large-scale movements of BTC [1]. Concurrently, a separate report noted a $9 billion sell-off of 80,000 BTC by a dormant whale on July 25, exacerbating concerns over liquidity imbalances [4].

The price drop rippled across the crypto market, with altcoins like Ethereum and Dogecoin experiencing valuation adjustments. Despite the turbulence, institutional investors maintained active positions, signaling confidence in long-term stability. ETF inflows totaling $1.17 billion partially offset net outflows of 29,000 BTC, underscoring sustained institutional demand [4]. Analysts highlighted that such behavior aligns with historical patterns, where large players capitalize on dips to diversify portfolios or secure strategic holdings [1].

Whale activity’s impact on market stability remains a focal point. Large transfers from Satoshi-era wallets can rapidly alter price trajectories by creating artificial supply shocks. For instance, Metaplanet’s accumulation of 780 BTC at prices exceeding $118,000—bringing its total holdings to $2 billion—demonstrated counterbalancing bullish forces amid bearish pressures [4]. However, the broader market’s resilience was tested as Bitcoin fluctuated between $117,949 and $119,574 over the preceding weeks [3].

Market participants remain divided on the implications of the $118,000 threshold breach. While Bitcoin’s MVRV pricing bands suggest a potential rebound to $130,000 if key support levels hold, analysts caution that further declines could occur if the level fails to stabilize [7]. The absence of regulatory clarity compounds uncertainty, creating both risks and opportunities for traders. Binance CEO Changpeng Zhao (CZ) notably refrained from commenting on the price drop, reflecting the cautious stance of major exchange leaders [1].

The volatility also influenced altcoin markets. Uniswap’s price dipped alongside Bitcoin’s decline, while altcoin futures open interest surged to $44.2 billion, indicating heightened speculative activity [8]. These developments suggest Bitcoin’s movements are increasingly shaping broader crypto dynamics, even as institutional accumulation persists.

In summary, the interplay of whale-driven sell-offs and institutional buying has created a volatile yet resilient market. While the $9 billion whale dump introduced near-term risks, ETF inflows and strategic accumulation by entities like Metaplanet highlight underlying demand. Investors now closely monitor whether the $118,000 level will act as a floor or trigger further corrections. Analysts emphasize that market stability will depend on balancing liquidity shocks with sustained institutional participation, though regulatory developments remain a critical unknown.

Sources:

[1] [Bitcoin May Face Further Volatility Following Whale Activity and Price Dip Below $118,000 July 29, 2025] [https://en.coinotag.com/bitcoin-may-face-further-volatility-following-whale-activity-and-price-dip-below-118000/]

[4] [Bitcoin's Record 29000 BTC Net Outflow Offset by Whale ...] [https://www.ainvest.com/news/bitcoin-news-today-bitcoin-record-29-000-btc-net-outflow-offset-whale-accumulation-1-17b-etf-inflows-2507/]

[3] [Crypto Price Analysis 7-28: BITCOIN: BTC] [https://cryptodaily.co.uk/2025/07/crypto-price-analysis-7-28-bitcoin-btc-ethereum-eth-solana-sol-aptos-apt-internet-computer-icp]

[7] [Bitcoin MVRV Pricing Bands Hint At $130K, But Only If This ...] [https://www.newsbtc.com/news/bitcoin/bitcoin-mvrv-pricing-bands-hint-at-130k-but-only-if-this-support-holds/]

[8] [Altcoin Futures OI: Remarkable $44.2 Billion Surge Signals ...] [https://bitcoinworld.co.in/altcoin-futures-oi-surge/]