Bitcoin News Today: Bitcoin Plummets Below $116K as Whale Sell-Off Intensifies

Bitcoin’s price has fallen below $116,000, continuing a week-long decline driven by aggressive selling from large holders, or whales [1]. The sell-off intensified on July 25, when a previously inactive whale address transferred over 30,000 BTC—valued at approximately $3.5 billion—to exchanges. This movement added to a broader trend, with more than 80,000 BTC having been sent to exchanges in recent weeks, intensifying downward pressure on the market [1]. The increased supply has overwhelmed the weakening demand, particularly as Bitcoin ETF inflows have significantly slowed. This week, spot Bitcoin ETFs added only $1.16 billion in assets, a sharp drop from the nearly $13.6 billion added just weeks prior [1].

The technical outlook has also deteriorated. Bitcoin has now broken below its 7-day simple moving average at $118,153, as well as the 23.6% Fibonacci retracement level of $118,859. The MACD histogram has turned sharply negative, currently reading -478.92, a strong indicator that bullish momentum is fading [1]. In addition, 24-hour trading volume surged by 83%, reaching $820 billion, signaling a shift from accumulation to distribution rather than long-term position building [1].

The bearish sentiment is also evident in the leverage segment. Over $530 million in long positions were liquidated in one day, with $380 million of that tied specifically to Bitcoin. This marks the largest daily liquidation in recent weeks and highlights the vulnerability of overleveraged traders [1]. Meanwhile, Coinbase reported a 39% quarter-over-quarter drop in trading revenue, suggesting that retail participation is waning. This decline in retail activity reduces the liquidity needed to absorb the sudden influx of BTC supply [1].

Institutional buyers remain cautious, with many monitoring Bitcoin’s performance near the $115,724 support level. If this level holds and ETF inflows stabilize, it could signal a potential recovery. However, the current trend remains bearish as both retail and institutional players adopt a more defensive stance [1].

Market analysts have offered mixed outlooks. 21Shares’ Matt Mena has expressed cautious optimism, predicting that a Federal Reserve rate cut could push Bitcoin toward $150,000 by year-end [2]. Conversely, CoinDesk notes that Bitcoin could consolidate between $112,000 and lower levels during the current correction phase [3]. These scenarios highlight the uncertainty surrounding the immediate future of the cryptocurrency.

Amid the broader sell-off, altcoins have also faced sharp declines. Solana (SOL), Avalanche (AVAX), and HYPE fell between 4–5%, while BONK and PENGU dropped up to 10% before partially recovering. The volatility reflects the broader market's sensitivity to macroeconomic signals and whale activity [2].

In a separate development, the Trump administration released a 160-page report outlining a clear division of regulatory oversight between the SEC and CFTC, emphasizing the need for a rational regulatory framework for digital assets. The report is seen as a potential catalyst for innovation and investor protection in the crypto sector [2].

At the same time, the presale market has drawn interest amid the uncertainty. Tokens such as Bitcoin Hyper have attracted significant investment, with the project leveraging Solana Virtual Machine technology to enhance Bitcoin’s scalability. It has already raised over $6 million in its presale phase [2]. These opportunities are being closely watched as investors seek alternative avenues in a challenging market.

Overall, the crypto market remains in a period of consolidation, with Bitcoin’s next move likely to be dictated by both macroeconomic developments and the actions of major market participants [1]. Traders and investors are advised to monitor ETF inflows and the quality of trading volume as key indicators of market direction.

Source:

[1] Coindoo – Bitcoin Price Drops Below $116K as Whale Sell-Off Rattles Market

https://coindoo.com/bitcoin-price-drops-below-116k-as-whale-sell-off-rattles-market/

[2] CoinDesk – Crypto Bulls Lose USD200M in Liquidations on Hawkish Powell Before Altcoin Bounce

https://www.coindesk.com/markets/2025/07/30/crypto-bulls-lose-usd200m-in-liquidations-on-hawkish-powell-before-altcoin-bounce

[3] CoinDesk – BTC Could Break Down to Potential Support Levels at $112,000 and Lower During a Likely Consolidation Phase

https://www.coindesk.com/