Bitcoin News Today: Bitcoin Plummets to $115,000 as Institutional Selling and Deribit Expiry Drive Volatility

Bitcoin (BTC) has experienced a significant price decline, dipping as low as $115,000 amid aggressive selling pressure from major holders and institutional players. A large whale linked to early Bitcoin mining activities has reportedly offloaded 10,000 BTC, with an additional 2,850 BTC recently moved to exchanges, intensifying downward momentum [1]. This selling, combined with the expiration of monthly BTC options on Deribit and broader market volatility, has pushed Bitcoin near critical support levels. Analysts highlight that the cryptocurrency is now consolidating within a $110,000–$120,000 range, with $116,000 serving as a key short-term floor [3].

Technical analysis of Bitcoin’s price action reveals the formation of a bull flag pattern, a continuation chart pattern indicating potential for a rebound after a consolidation phase. The recent price drop aligns with the flag’s structure, leaving traders to speculate whether bulls can defend the lower boundary or if bears will push the price below $112,000. If the latter occurs, a rapid decline could follow. Conversely, a successful defense might trigger a rally toward $130,000, as measured by the flag’s projected move based on prior bullish trends [1]. Stochastic RSI indicators, currently near oversold levels, suggest a potential near-term reversal, with the next one to two days critical for momentum shifts [1].

The selloff extends beyond Bitcoin, with Ethereum (ETH) facing a parallel downturn due to validator exits from its staking system, which hit an 18-month high. Approximately $2.34 billion in ETH remains in the unstaking queue, reflecting strategic portfolio adjustments by large holders amid macroeconomic uncertainties. Altcoins such as XRP and Dogecoin (DOGE) have also suffered, with DOGE losing 18.5% in two days as algorithmic selling and leveraged liquidations amplified losses [3]. Institutional profit-taking and technical breakdowns have synchronized declines across major cryptocurrencies, though Bitcoin’s dominance has risen as investors seek relative safety [4].

Market dynamics are further complicated by derivatives activity and upcoming Federal Reserve decisions. Deribit’s monthly options expiry coincided with the BTC sell-off, exacerbating short-term volatility as traders squared positions. Paul Howard, Director at Wincent, noted that Bitcoin’s volatility index remains subdued at around 40, with a range-bound summer expected as policymakers step back from active interventions. He anticipates heightened volatility post-September expiries, which could slow price discovery [4]. Meanwhile, institutional adoption and potential ETF inflows remain bullish long-term catalysts, though near-term outcomes will hinge on Ethereum’s staking stability and the Fed’s policy path [6].

Bitcoin’s ability to stabilize above $118,000 during the weekend has provided some optimism, suggesting critical support levels are holding. However, upside potential remains constrained until the asset reclaims the $120,000 psychological barrier. Traders are closely monitoring whether the current correction will resolve into a consolidation phase or signal a deeper bearish shift. While the broader market remains cautious, analysts emphasize that the ongoing bull market trend remains intact, with any downturn viewed as a temporary correction rather than a structural reversal [6].

Source:

[1] [Bitcoin (BTC) Hits Lower Low Amid Heavy Selling: Price Analysis][https://cryptodaily.co.uk/2025/07/bitcoin-btc-hits-lower-low-amid-heavy-selling-price-analysis]

[3] [Monthly BTC and ETH Options Expiry Impact Market Volatility][https://www.mitrade.com/insights/news/live-news/article-3-986704-20250725]

[4] [Bitcoin Price Analysis: BTC Holds Above $118,000][https://cryptodaily.co.uk/news-in-crypto/bitzo:bitcoin-price-analysis-btc-holds-above-118000-but-120000-a-bridge-too-far-for-now]

[6] [Bitcoin’s Relative Strength Amid Broader Market Weakness][https://coingape.com/why-is-bitcoin-price-down-today-3/]