Bitcoin News Today: Bitcoin Falls Below $115,356 as $585M in Liquidations Trigger 2.63% Drop

Bitcoin’s price declined below $115,356 on July 25, 2025, as over $585 million in liquidations unfolded across the cryptocurrency market, driven by leveraged long positions and regulatory uncertainties. The selloff, concentrated in Bitcoin and major altcoins, reflected a market correction after a recent rally that pushed Bitcoin to a record high of $123,100 on July 14. Over 213,729 traders were liquidated within 24 hours, with Bitcoin-specific losses reaching $140 million as the asset’s price dropped 2.63%. Ether and Dogecoin also faced steep declines, with Ethereum liquidations totaling $104.76 million and Dogecoin shedding $26 million in long positions [1].

The downturn coincided with large-scale Bitcoin transfers to exchanges, intensifying selling pressure. Galaxy Digital CEO Michael Novogratz highlighted that such on-chain activity “contributed to volatility,” citing data from Arkham Intelligence [1]. Analysts attributed part of the crash to “leverage flushes,” where aggressive market movements erased positions held by late entrants. Over $731 million in combined long and short liquidations signaled heightened sensitivity to macroeconomic shifts and liquidity imbalances [2].

Policy uncertainties further exacerbated the sell-off. A White House report outlining potential regulatory frameworks and delays in U.S. exchange-traded fund (ETF) approvals fueled concerns about stricter oversight. Meanwhile, the Federal Reserve’s policy trajectory and global inflation trends weighed on investor sentiment. Bitcoin’s 2.63% decline marked its lowest level since early July, underscoring the fragility of its recent gains [2].

Despite the selloff, market sentiment remained mixed. The Crypto Fear & Greed Index recorded a “Greed” score of 70, indicating lingering bullish expectations [2]. However, traders hedged against short-term reversals, with $3.07 billion in short positions at risk if prices rebounded to $119,500. Analysts noted that Bitcoin’s breakdown below $116,000 could trigger further declines toward key support levels, compounding risks from ETF outflows and liquidity clusters [3].

Looking ahead, the market’s trajectory hinges on macroeconomic data, policy developments, and liquidity flows. Galaxy Digital’s Novogratz forecasted Ethereum could reach $4,000—a 9.8% increase from its current price—while Bitfinex analysts flagged $136,000 as a potential target for Bitcoin if its uptrend resumes [2]. However, institutional participation and ETF anticipation, which historically bolstered crypto rallies, now face challenges from over-leveraged positions and regulatory ambiguity.

The liquidations and price correction underscore the sector’s vulnerability to leverage and liquidity. As traders monitor key levels near $118,000, the interplay between macroeconomic factors and regulatory clarity will shape Bitcoin’s near-term outlook. For now, the episode serves as a cautionary tale for investors navigating the volatile crypto landscape.

Source: [1] [Bitcoin Falls Below $116,000 Triggering $140M+ in Liquidations](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-falls-116-000-triggering-140m-liquidations-altcoins-plunge-etf-delays-macro-uncertainty-2507/)

[2] [Bitcoin Tumbles Below $116K in Bloodbath for Crypto Longs](https://www.fxstreet.com/cryptocurrencies/news/bitcoin-tumbles-below-116k-in-bloodbath-for-crypto-longs-202507250541)

[3] [Bitcoin Price Holds $118K as $116K Breakdown Looms](https://www.tradingnews.com/news/bitcoin-price-btc-usd-battles-116k-usd)

[4] [Crypto Market Cap Drops Over 6% as Bitcoin, ETH and XRP Enter Red](https://www.tradingview.com/news/cryptonews:1521ed32f094b:0-crypto-market-cap-drops-over-6-as-bitcoin-eth-and-xrp-enter-red-what-s-going-on/)