Bitcoin News Today: Bitcoin drops below $116,000 as Fed meeting, crypto policy loom

Bitcoin’s price fell below $115,555 on July 25, 2025, as market participants braced for the U.S. Federal Reserve’s policy meeting and the imminent release of the White House’s long-awaited crypto policy report on July 30 [1]. The world’s largest cryptocurrency had surged above $123,000 earlier in the week but retreated amid large wallet movements and profit-taking. According to Arkham Intel data, Galaxy Digital moved 3,420 bitcoins ($395 million) to exchanges and sent 250 bitcoins to an unknown address, contributing to volatility [1].

The pullback reflected broader caution in the crypto market, with most altcoins subdued following a volatile session. Ethereum rose 1.8% to $3,623.89, while XRP gained 2.8%. However, Solana dipped 1.6%, and meme tokens like Dogecoin lost 0.4%. Traders liquidated over $700 million in leveraged long positions during the turmoil, signaling risk-off behavior ahead of macroeconomic developments [1][3].

The Federal Reserve’s July 30 meeting is expected to maintain interest rates but will draw attention to officials’ remarks on inflation and future monetary policy. Simultaneously, White House crypto adviser Bo Hines confirmed the completion of the 180-day policy report, mandated by a January executive order. The document will outline plans for managing U.S. government-held Bitcoin and propose a regulatory framework for the industry [1]. Analysts anticipate the report to clarify the administration’s stance on crypto asset management and potential tax implications [1].

Corporate activity also influenced market sentiment. Michael Saylor’s Strategy, formerly MicroStrategy, announced a $2.8 billion preferred stock offering to expand its Bitcoin holdings, up from an initial $500 million. The move underscores institutional demand for Bitcoin as a strategic asset [1]. Meanwhile, Ethereum withdrawals spiked during the Asian session, indicating capital reallocation as traders hedged against macroeconomic uncertainty [2].

Bitcoin’s short-term trajectory remains constrained within a $116,000–$120,000 range, with technical indicators suggesting potential support at $116,000 and resistance near $120,000. Analysts noted that prolonged indecision could exacerbate volatility, particularly if the Fed signals hawkish tendencies or the crypto policy report introduces regulatory ambiguity [1][4]. Prediction markets offered mixed outlooks, with some models forecasting a pullback to $114,000–$115,000 and others highlighting the resilience of the $116,000 support level [1][4].

The market’s focus will shift to July 30 as pivotal events converge. Institutional liquidity and macroeconomic signals will play a decisive role in determining Bitcoin’s next move, with traders closely monitoring developments for clarity on policy and rate expectations [1].

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 Dips Below $118K as Ethereum Withdrawals Climb](https://margex.com/en/blog/bitcoin-dips-below-118k-as-ethereum-withdrawals-climb/)

[3] [Crypto Markets Dip—Liquidating Over $700M from Leveraged Traders](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)