Bitcoin News Today: Bitcoin Plummets 6.8% Below $115K Amid $155M Liquidations as Leverage Collapses on July 25, 2025.

Bitcoin’s price fell below $115,000 on July 25, 2025, amid a wave of liquidations totaling $155 million across major exchanges, as leveraged long positions collapsed under intense selling pressure. The abrupt decline, driven by rapid cascading liquidations and institutional unloading, left traders reeling and underscored the fragility of overextended positions in the cryptocurrency market. While the immediate trigger remains unclear, analysts highlighted a combination of algorithmic trading triggers, strategic whale activity, and derivatives expiries as contributing factors. The selloff occurred without any regulatory intervention or corporate action, amplifying the market’s exposure to sudden volatility [1].

The drop erased weeks of gains, with Bitcoin’s market capitalization retreating to $2.3 trillion as derivatives trading volumes spiked to $84.97 billion. Institutional players appeared to play a pivotal role in exacerbating the downturn. Galaxy Digital’s offloading of $1.18 billion in Bitcoin on July 6 set the stage for broader market jitters, while a subsequent $2 billion transfer equivalent to 17,123 BTC on July 12 pushed prices sharply lower. These moves, combined with a record-high open interest, revealed a market teetering between speculative fervor and liquidity constraints [2].

Retail and institutional traders with leveraged bullish positions faced severe losses as liquidations concentrated between $117,000 and $120,000. Automated trading algorithms and resistance-level triggers amplified the sell-off, creating a self-reinforcing cycle of panic. While systemic risks were not immediately apparent, the event exposed vulnerabilities in leveraged trading strategies, particularly among over-leveraged retail investors [3]. Analysts from BRN and Bitunix described the correction as a “healthy reset” and a “shakeout” of unsustainable positions, emphasizing that key support levels like $110,000 would now be critical for stabilizing sentiment [4].

The market’s response to the turmoil was mixed. Ethereum bucked the trend with a modest gain, while Solana and XRP fell by up to 5%, reflecting divergent reactions across crypto assets. By July 19, Bitcoin stabilized slightly above $115,000 after Galaxy Digital announced the completion of its 80,000 BTC sale, but lingering risks of further corrections persisted. The episode highlighted the outsized influence of large holders and derivatives expiries in driving disproportionate volatility, particularly in a market where leverage remains pervasive [5].

Experts caution that short-term volatility is likely to persist as traders adjust to shifting dynamics. However, the absence of immediate regulatory or political responses suggests the market will continue to self-correct organically. For now, the focus remains on whether institutional selling will subside or if additional liquidity contractions could test key support levels. Market observers stress the importance of enhanced risk protocols and technological safeguards to mitigate future shocks [6].

Source: [1] [Bitcoin News: Bitcoin Grabs $115K Liquidity as Whale Bets](https://www.binance.com/en/square/post/07-25-2025-bitcoin-news-bitcoin-grabs-115k-liquidity-as-whale-bets-23-7m-on-200k-btc-by-year-end-27419717429130) [2] [Bitcoin Open Interest Sets New Record As Price Plunges](https://www.mitrade.com/insights/news/live-news/article-3-988538-20250726) [3] [Why is Bitcoin Price Down Today?](https://coingape.com/why-is-bitcoin-price-down-today-3/) [4] [Bitcoin Dips 6.8% Below $115K as Galaxy Digital's $2B BTC Transfer Triggers Sharp Correction](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-dips-6-8-115k-galaxy-digital-2b-btc-transfer-triggers-sharp-correction-2507/) [5] [Bitcoin Plummets to $115000 as Institutional Selling and Deribit Expiry Drive Volatility](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-plummets-115-000-institutional-selling-deribit-expiry-drive-volatility-2507/) [6] [Whales Unload Bitcoin - Is $110K the Next Stop?](https://coindoo.com/whales-unload-bitcoin-is-110k-the-next-stop/)