Bitcoin News Today: Bitcoin Falls 6.5% Below $115K on Profit-Taking and Institutional Moves Ahead of Fed Policy

Bitcoin’s price dipped below $115,000 on July 25, 2025, marking a significant pullback after surging above $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 an additional 250 bitcoins to an unknown address, amplifying market volatility [1]. This selloff coincided with heightened anticipation for the U.S. Federal Reserve’s July 30 policy meeting and the release of the White House’s 180-day crypto policy report, which aims to outline regulatory frameworks and strategies for managing government-held Bitcoin [1].

The broader crypto market mirrored Bitcoin’s weakness, with most altcoins subdued. Ethereum rose 1.8% to $3,623.89, while XRP gained 2.8%. Solana, however, dipped 1.6%, and meme tokens like Dogecoin lost 0.4%. Over $700 million in leveraged long positions were liquidated during the selloff, reflecting risk-off behavior ahead of macroeconomic developments [1][3].

Institutional activity added nuance to market sentiment. Michael Saylor’s MicroStrategy announced a $2.8 billion preferred stock offering to expand its Bitcoin holdings, up from an initial $500 million target, underscoring corporate confidence in Bitcoin as a strategic asset [1]. Meanwhile, Ethereum withdrawals surged during the Asian trading session, signaling capital reallocation as traders hedged against uncertainty [2].

Technically, Bitcoin remains confined within a $116,000–$120,000 range, with key support at $116,000 and resistance near $120,000. Analysts warn that prolonged indecision could intensify volatility, particularly if the Fed signals hawkish tendencies or the policy report introduces regulatory ambiguity [1][4]. Prediction markets reflect mixed expectations, with some models projecting a pullback to $114,000–$115,000 and others emphasizing the resilience of the $116,000 support level [1][4].

The July 30 events—Fed policy decisions and the White House report—will likely determine Bitcoin’s next trajectory. Institutional liquidity and macroeconomic signals will be critical in shaping market reactions, as traders await clarity on regulatory and rate expectations [1].

The dip underscores Bitcoin’s inherent volatility, shaped by macroeconomic trends, regulatory developments, and investor sentiment [1]. COINOTAG noted the price drop as a “natural correction within Bitcoin’s growth cycle, reflecting both profit-taking and broader market recalibration” [1]. Analysts emphasize the importance of disciplined strategies, including diversification, stop-loss orders, and dollar-cost averaging, to mitigate risks during downturns [1].

While short-term corrections are expected in Bitcoin’s price evolution, many experts maintain a positive long-term outlook. The cryptocurrency’s role as a decentralized, scarce asset continues to attract institutional interest, reinforcing its narrative as “digital gold” [1]. However, challenges such as regulatory scrutiny and competition from emerging cryptocurrencies persist. The current price movement is widely viewed as a natural market adjustment rather than a fundamental shift, highlighting the need for strategic patience and informed decision-making [1].

As Bitcoin navigates this phase, investors are advised to remain informed without succumbing to impulsive trading. The interplay of global economic indicators, regulatory clarity, and institutional adoption will likely dictate its near-term direction, with key support and resistance levels serving as critical barometers for market sentiment.

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)