Bitcoin News Today: Bitcoin drops 1.8% below $116k as institutional trades and Fed policy anticipation drive caution

Bitcoin's price declined below $116,000 on July 25, 2025, as large institutional transactions and anticipation of the U.S. Federal Reserve’s policy meeting intensified market caution. The cryptocurrency, which had reached a record high of $123,000 the previous week, traded at $115,555.4 by 01:28 ET, reflecting a 1.8% drop. The sell-off followed a reported transfer of 3,420 bitcoins ($395 million) by Galaxy Digital to exchanges, alongside 250 bitcoins sent to an unknown address, as per Arkham Intel data [1].

The Federal Reserve’s July 30 policy meeting, expected to maintain interest rates, has drawn focus to central bank commentary on inflation and future monetary policy. Concurrently, the U.S. Digital Asset Working Group, led by White House adviser Bo Hines, is set to release its final 180-day crypto policy report on the same date. The document, mandated by an executive order, is anticipated to outline the management of government-held Bitcoin and propose a regulatory framework for the sector [2].

Market dynamics highlighted a tug-of-war between bullish and bearish forces, with Bitcoin consolidating within a $116,000–$120,000 range. Institutional activity temporarily stabilized prices during the Asian session, pushing them back above $117,200 after testing support levels. However, the absence of sustained momentum above $120,000 raised concerns about waning buying pressure, despite Bitcoin’s dominance metric reaching 62% [3].

Analysts observed divergent technical outlooks, with some predicting a pullback to $114,000–$115,000 due to historical gaps, while others emphasized the resilience of the $116,000 support zone [4]. Prediction markets cited $131,000 as a potential target if bulls reclaim key resistance, though prolonged indecision within the consolidation range could expose structural vulnerabilities. Rising Ethereum withdrawals further complicated Bitcoin’s trajectory, signaling shifting capital flows [2].

The broader crypto market mirrored Bitcoin’s volatility. Ethereum rose 1.8% to $3,623.89, XRP climbed 2.8% to $3.116, and Cardano gained 3.1%, while Solana fell 1.6%. Meme tokens like Dogecoin dropped 0.4%, and $TRUMP gained 1.7%. The stabilization followed sharp losses on Thursday, with traders tempering gains amid profit-taking and whale activity [1].

Institutional players also signaled confidence in Bitcoin’s long-term potential. Michael Saylor’s Strategy, formerly MicroStrategy, announced a $2.8 billion preferred stock offering—up from $500 million—to expand its corporate Bitcoin holdings, a key driver of its valuation. The move underscores institutional demand for the asset despite near-term volatility [1].

With macroeconomic uncertainty and policy developments looming, the market’s next moves will likely hinge on how traders interpret the Fed’s stance and the crypto policy report. The current equilibrium within the $116,000–$120,000 range remains fragile, with liquidity shifts and regulatory clarity expected to play pivotal roles in determining Bitcoin’s trajectory.

Sources:

[1] [Bitcoin Price Today: Drops Below $116k Ahead of Fed Meet, Crypto Policy Report](https://www.investing.com/news/cryptocurrency-news/bitcoin-price-today-drops-below-116k-ahead-of-fed-meet-crypto-policy-report-4152447)

[2] [Bitcoin Trapped in $116K–$120K Range Amid 1.7% Daily Drop](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-trapped-116k-120k-range-1-7-daily-drop-macroeconomic-events-loom-2507/)

[3] [What Traders Should Do as the Crypto Markets Dip](https://www.fxstreet.com/cryptocurrencies/news/crypto-markets-dip-liquidating-over-700-million-from-leveraged-traders-853-being-longs-202507240429)

[4] [Bitcoin May Drop. BTC Traders May Face Price Traps](https://www.forexmart.com/analytical-reviews/article/418259)