Bitcoin News Today: Bitcoin Stabilizes Above $110K Amid 40,000 BTC Sell-Off, Open Interest Surges $1.52B

Bitcoin’s ability to stabilize above $110,000 amid a significant 40,000 BTC sell-off has highlighted resilience in the cryptocurrency market, driven by institutional liquidity, balanced derivatives activity, and strategic distribution mechanisms. Despite the surge in on-chain selling pressure and reactivation of dormant wallets, key indicators such as neutral funding rates and rising open interest suggest the market is consolidating rather than breaking into a sustained downtrend.

The sell-off, which saw over 40,000 BTC deposited onto exchanges, coincided with a broader redistribution of Bitcoin from long-dormant wallets, including 3.9K BTC from accounts over a decade old. This activity, combined with large-volume orders from OTC desks and whale investors, initially pressured the price of Bitcoin, which had peaked near $123,471 earlier in the year. However, the asset avoided a sharp correction, maintaining a floor above $110,000. Analysts attribute this to the absence of excessive leverage, as funding rates on major derivatives platforms like Bybit, OKX, and Binance remained flat or mildly positive. This neutrality indicates a market in equilibrium, where aggressive shorting is balanced by buying interest, reducing the risk of forced liquidations [2].

A critical factor supporting Bitcoin’s stability was the surge in open interest (OI), particularly on Bybit, where OI rose by $1.52 billion in a 24-hour period—setting a platform record. While rising OI typically correlates with upward price momentum, the current context is distinct: OI is increasing during a retracement phase, suggesting speculative positioning for volatility. Historical patterns on Bybit show that such setups often precede sharp directional moves, either bullish or bearish [1]. The divergence between price action and OI metrics underscores a market preparing for a potential breakout once summer trading lulls subside.

The Galaxy Digital-led sale of 40,000 BTC in late July 2025 further illustrates the maturing infrastructure of crypto markets. This transaction, part of a larger $9.7 billion divestment of 80,000 BTC from a dormant wallet, initially triggered a $114,600 intraday low on July 18 amid $500 million in liquidations. However, institutional buyers absorbed the supply, allowing Bitcoin to rebound to $117,992 by July 25. The sale, executed through exchanges in a phased manner to minimize volatility, demonstrated how professional market participants manage large trades without destabilizing broader price trends [3]. Blockchain analytics firm Lookonchain noted that the gradual distribution approach mitigated panic-driven selling, reinforcing confidence in Bitcoin’s institutional-grade liquidity [1].

Market observers emphasize that the sell-off’s limited impact reflects growing maturity in both on-chain and derivatives markets. Neutral funding rates, rising OI, and active OTC flows indicate that buyers are stepping in to absorb excess supply, countering short-term distribution pressures. This dynamic contrasts with earlier market cycles, where large transactions often led to prolonged volatility. The event also underscores Bitcoin’s evolving role as a strategic asset, with institutional adoption and ETF inflows providing a stabilizing force even during high-volume sell-offs [3].

As the market digests these developments, the focus shifts to whether consolidation will give way to renewed bullish momentum. The resilience observed during this sell-off suggests that Bitcoin’s infrastructure is increasingly capable of handling large-scale transactions, reducing the risk of systemic shocks. However, sustained price action will depend on the interplay between new inflows and potential future distribution events, particularly as more early investors seek to monetize holdings in a maturing ecosystem.

Sources:

[1] [Bitcoin News Today: Bitcoin surges to $117000 as Galaxy ...](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-surges-117-000-galaxy-completes-9b-btc-sale-satoshi-era-investor-2507/)

[2] [Bitcoin strength index: historic collapse after Galaxy Digital ...](https://en.cryptonomist.ch/2025/07/25/bitcoin-strength-index-historic-collapse-after-galaxy-digital-sales/)

[3] [Bitcoin 'strength' index crashes as Galaxy Digital sales ...](https://www.tradingview.com/news/cointelegraph:52e5d38f7094b:0-bitcoin-strength-index-crashes-as-galaxy-digital-sales-liquidate-500m/)