Bitcoin News Today: Bitcoin Falls Below $115K After 6.5% Correction Amid Profit-Taking and Fed Policy Anticipation

Bitcoin’s price fell below $115,000 on July 25, 2025, marking a significant correction from its recent peak of $123,000 earlier in the week. The decline, attributed to profit-taking and large wallet movements, saw Galaxy Digital transfer 3,420 bitcoins ($395 million) to exchanges and 250 bitcoins to an unknown address, amplifying market volatility [1]. The sell-off triggered over $700 million in liquidations of leveraged long positions, with 93% of affected positions being long, as traders adopted risk-off strategies ahead of the U.S. Federal Reserve’s policy meeting and the White House’s impending crypto policy report [1][3].

The dip to approximately $114,940 on major exchanges like Binance breached a psychological threshold closely monitored by traders, signaling potential short-term shifts in market sentiment. Analysts note that technical factors—including liquidity constraints, trading volume fluctuations, and order book imbalances—combined with external influences, drive Bitcoin’s volatility. COINOTAG observed that the correction is “a natural part of Bitcoin’s growth cycle,” reflecting broader market recalibration and profit-taking [1].

Key drivers of the price drop include macroeconomic uncertainty and regulatory developments. The Federal Reserve’s July 30 meeting, expected to maintain interest rates, has heightened attention on officials’ comments about inflation and monetary policy. Concurrently, the White House confirmed finalization of its 180-day crypto policy report, which will outline U.S. government-held Bitcoin management and regulatory frameworks. Analysts anticipate the report to clarify tax implications and regulatory stances but caution that ambiguity could prolong market indecision [1].

Corporate actions also influenced sentiment. Michael Saylor’s MicroStrategy announced a $2.8 billion preferred stock offering to expand Bitcoin holdings, signaling institutional confidence in the asset’s strategic value [1]. However, technical analysis indicates Bitcoin remains trapped in a $116,000–$120,000 range, with critical support at $116,000 and resistance near $120,000. Prolonged consolidation could intensify volatility if the Fed adopts a hawkish tone or the policy report introduces regulatory uncertainty [1][4]. Prediction markets show divergent views, with some models forecasting a drop to $114,000–$115,000 and others highlighting the resilience of the $116,000 support level [1][4].

Ethereum and other altcoins experienced mixed outcomes amid the Bitcoin sell-off. While Ethereum edged up 1.8% to $3,623.89 and XRP rose 2.8%, Solana fell 1.6%, and meme tokens like Dogecoin declined 0.4%. Ethereum withdrawals surged during the Asian trading session, reflecting capital reallocation amid macroeconomic uncertainty [2].

Strategic responses to Bitcoin’s volatility emphasize disciplined investment approaches. Experts advise thorough research (DYOR), risk management techniques like diversification and stop-loss orders, and Dollar-Cost Averaging (DCA) to mitigate downturn risks. Staying informed without impulsive trading helps maintain a long-term perspective, critical for navigating cyclical market behavior [1].

As July 30 approaches, market participants will closely monitor the Fed’s policy signals and the crypto policy report for clarity. Institutional liquidity and macroeconomic developments are poised to dictate Bitcoin’s next move, with traders balancing optimism over regulatory clarity against concerns over tightening monetary conditions [1].

Source: [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)