Bitcoin News Today: Bitcoin plummets 6.8% to $115K as institutional selling and algorithmic triggers trigger $155M liquidations

Bitcoin’s price fell to $115,000 on July 25, 2025, amid a wave of liquidations totaling over $155 million, as leveraged traders faced significant losses. The drop, driven by cascading algorithmic triggers and strategic selling by institutional players, marked one of the most abrupt corrections in recent months. Major exchanges reported a surge in long-position liquidations, with retail and institutional traders bearing the brunt of the volatility. Notably, Galaxy Digital’s transfer of 17,123 BTC (valued at nearly $2 billion) intensified downward pressure, pushing the price below critical support levels and triggering a 6.8% decline [6].

The sell-off coincided with the Deribit options expiry, a period typically associated with heightened liquidity demands as traders adjust positions. This timing exacerbated the market’s fragility, as stop-loss orders and margin calls accelerated the decline. Analysts attributed the rapid liquidations to over-leveraged positions in the $117,000–$120,000 range, where automated trading systems triggered mass exits. Despite the turmoil, Bitcoin’s market capitalization stabilized at approximately $2.3 trillion, with derivatives trading volumes surging to $84.97 billion as traders scrambled to hedge or exit positions [1].

The event underscored structural vulnerabilities in leveraged markets. Traders with aggressive long exposure were particularly vulnerable, as liquidity contractions created a self-reinforcing cycle of selling. Institutional activity, including large-scale offloading by whale holders, further amplified the downward momentum. One report highlighted a $1.18 billion BTC liquidation over a single session, illustrating the scale of institutional participation in the correction [5]. Meanwhile, open interest reached record highs, reflecting both speculative fervor and the risks of concentrated leverage [1].

Market analysts noted mixed signals for the near term. While Bitcoin briefly rebounded above $117,000 following Galaxy Digital’s completion of an 80,000 BTC sale, uncertainties persisted. The $115,000 level, now a focal point for liquidity, could face renewed pressure if stabilizing factors such as buy-the-dip strategies fail to materialize. Speculation abounds about potential support levels, with some observers anticipating a test of the $110,000 threshold, though immediate liquidity buildup in key zones has offered cautious optimism [8].

The episode highlights the delicate balance between speculative momentum and fundamental resilience in the crypto market. While no regulatory interventions were recorded during the event, the absence of systemic risks suggests the market’s capacity to absorb such shocks for now. However, prolonged volatility could test investor confidence, particularly if macroeconomic concerns or regulatory scrutiny resurface. Analysts emphasize the need for vigilant monitoring of open interest and institutional selling patterns, which remain critical variables in near-term price action [1].

Source: [1] [Bitcoin Open Interest Sets New Record As Price Plunges] https://www.mitrade.com/insights/news/live-news/article-3-988538-20250726

[2] [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

[3] [Bitcoin Plummets to $115000 as Institutional Selling and ...] https://www.ainvest.com/news/bitcoin-news-today-bitcoin-plummets-115-000-institutional-selling-deribit-expiry-drive-volatility-2507/

[4] [Crypto price today: Bitcoin slips below $116000 amid ...] https://m.economictimes.com/markets/cryptocurrency/crypto-news-today-bitcoin-slips-below-116000-amid-liquidations-solana-xrp-fall-up-to-5/articleshow/122902943.cms

[5] [Why is Bitcoin Price Down Today?] https://coingape.com/why-is-bitcoin-price-down-today-3/

[6] [Bitcoin Dips 6.8% Below $115K as Galaxy Digital's $2B ...] https://www.ainvest.com/news/bitcoin-news-today-bitcoin-dips-6-8-115k-galaxy-digital-2b-btc-transfer-triggers-sharp-correction-2507/

[8] [Whales Unload Bitcoin - Is $110K the Next Stop?] https://coindoo.com/whales-unload-bitcoin-is-110k-the-next-stop/

[9] [BTC Price Rises As Galaxy Digital Completes ...] https://coingape.com/btc-price-rises-as-galaxy-digital-completes-80000-bitcoin-sale/