Bitcoin News Today: Bitcoin Surges to $117K as Retail Traders Sell, Institutions Accumulate in Bull Cycle

Bitcoin’s price surged to $117,000 on July 25, 2025, amid intense selling pressure in the ongoing bull cycle, highlighting a market split between cautious retail traders and strategic institutional activity. On-chain data revealed contrasting behaviors: short-term holders (STHs) on Binance exhibited profit-taking tendencies, while Kraken’s large whale outflows pointed to long-term accumulation. The STH inflow ratio on Binance surpassed 0.4—a level historically tied to heightened retail selling pressure—as traders locked in gains amid volatility [2]. Simultaneously, Kraken reported a single-day outflow of 9,600 BTC on July 22, one of the largest in months, interpreted by analysts as whale-driven positioning for future value [3]. This duality underscored fragmented market sentiment, with retail actors prioritizing short-term security and institutions betting on long-term resilience.

Exchange dynamics further complicated the narrative. Binance’s reserve metrics showed record unrealized profits on Bitcoin holdings, reaching 60,000 BTC, despite a decline in total reserves from 631,000 BTC in September 2024 to 574,000 BTC in 2025. Approximately 16,000 BTC were tied to custodial wallets supporting the BTCB token on the BNB Chain, a shift analysts attributed to growing adoption of decentralized custody solutions [4]. Meanwhile, open interest surged to $44.5 billion, a record high, as Bitcoin fell 6% from its July peak to $115,002, reflecting elevated speculative activity [1].

Macro factors and market structure played pivotal roles. Leveraged liquidations exceeded $500 million during price swings, exacerbating volatility. The Bitcoin Fundamental Index, however, remained resilient, suggesting underlying strength despite short-term corrections. Analysts noted that the current consolidation mirrored historical patterns following sharp rallies, with overbought RSI readings and resistance at $120,000 acting as natural pauses [6]. The coexistence of bullish and bearish indicators highlighted fragility in leveraged positions, increasing the risk of further corrections if margin calls escalate.

Broader market trends aligned with Bitcoin’s trajectory. A 56% probability of a September Federal Reserve rate cut was priced in by traders, anchoring Bitcoin’s trading range between $117,000 and $120,000 until macroeconomic clarity emerges [14]. Altcoins lagged, with Ethereum dropping to $3,600 and Bitcoin’s market dominance shrinking to 60.7%, fueling speculation about altcoin rotations. Yet, risk-off sentiment persisted for smaller-cap tokens, reflecting a cautious outlook [10].

Retail and institutional sentiment diverged, as evidenced by the Crypto Fear and Greed Index, which stood at 74—indicating lingering optimism despite the pullback [15]. Analysts were split on the near-term outlook: some viewed the consolidation as a healthy correction, while others warned of potential retracements to $113,000. The absence of major cycle-top indicators, such as Pi Cycle Top or MVRV thresholds, suggested the uptrend remained intact [9].

Technical analysis focused on Bitcoin’s ability to hold above $115,000, a critical level for determining whether traders would add to long positions or reduce exposure [1]. As the bull cycle navigates historic selling pressure, the interplay of retail caution and institutional confidence signals a maturing market, with outcomes dependent on macroeconomic developments and on-chain stability.

Sources:

[1] [Bitcoin Consolidates Below $120K as Exchange Activity Reflects Mixed Market Signals] [https://www.newsbtc.com/bitcoin-news/bitcoin-consolidates-below-120k-as-exchange-activity-reflects-mixed-market-signals/]

[2] [Bitcoin Consolidates Below $120K as Exchange Activity Reflects Mixed Market Signals] [https://www.newsbtc.com/bitcoin-news/bitcoin-consolidates-below-120k-as-exchange-activity-reflects-mixed-market-signals/]

[3] [Bitcoin Consolidates Below $120K as Exchange Activity Reflects Mixed Market Signals] [https://www.newsbtc.com/bitcoin-news/bitcoin-consolidates-below-120k-as-exchange-activity-reflects-mixed-market-signals/]

[4] [Bitcoin Consolidates Below $120K as Exchange Activity Reflects Mixed Market Signals] [https://www.newsbtc.com/bitcoin-news/bitcoin-consolidates-below-120k-as-exchange-activity-reflects-mixed-market-signals/]

[6] [Bitcoin Consolidates Below $120K as Exchange Activity Reflects Mixed Market Signals] [https://www.newsbtc.com/bitcoin-news/bitcoin-consolidates-below-120k-as-exchange-activity-reflects-mixed-market-signals/]

[9] [Bitcoin Consolidates Below $120K as Exchange Activity Reflects Mixed Market Signals] [https://www.newsbtc.com/bitcoin-news/bitcoin-consolidates-below-120k-as-exchange-activity-reflects-mixed-market-signals/]

[10] [Bitcoin Consolidates Below $120K as Exchange Activity Reflects Mixed Market Signals] [https://www.newsbtc.com/bitcoin-news/bitcoin-consolidates-below-120k-as-exchange-activity-reflects-mixed-market-signals/]

[14] [Bitcoin Consolidates Below $120K as Exchange Activity Reflects Mixed Market Signals] [https://www.newsbtc.com/bitcoin-news/bitcoin-consolidates-below-120k-as-exchange-activity-reflects-mixed-market-signals/]

[15] [Bitcoin Consolidates Below $120K as Exchange Activity Reflects Mixed Market Signals] [https://www.newsbtc.com/bitcoin-news/bitcoin-consolidates-below-120k-as-exchange-activity-reflects-mixed-market-signals/]