Bitcoin News Today: Galaxy Digital's $3.7B BTC Sale Triggers $500M Liquidations Bitcoin Dips 1.8%

A significant selloff in Bitcoin triggered over $500 million in liquidations across cryptocurrency markets as major players offloaded billions in digital assets. Galaxy Digital, a prominent institutional crypto firm, moved approximately $3.7 billion worth of Bitcoin to exchanges within a 10-hour window, with 26,100 BTC—held by short-term investors—sold at a loss. The firm’s actions, part of its broader custody and asset management services, were flagged by crypto analyst Maartunn as a key driver of elevated selling pressure. Bitcoin prices fell 1.8% to $116,365 amid the turmoil, marking a 37% surge in 24-hour trading volume to $131.6 billion [1].

The liquidation event, driven by leveraged long positions, saw $531 million in options contracts wiped out, with $376 million attributed to bullish traders. Valentin Fournier of BRN Research described the outcome as a "healthy reset" for overleveraged positions, noting that short open interest now exceeds $2.8 billion. This shift has raised speculation about a potential short squeeze should Bitcoin regain upward momentum [1]. Meanwhile, the Crypto Fear & Greed Index, a sentiment indicator, dipped slightly to 70, reflecting cautious optimism among traders [1].

Technical indicators underscored the market’s volatility. Bitcoin’s RSI hit 6/100, signaling oversold conditions, while Ethereum bucked the trend by rising 1.9% to $3,621. Analysts attributed the divergent performance to a rotation in risk appetite, with altcoins gaining traction amid Bitcoin’s consolidation. Ruslan Lienkha of YouHodler emphasized that the correction represented a "temporary pause" in the broader bull market, though macroeconomic risks like inflation and trade tensions remain potential headwinds [6].

Institutional activity further highlighted market fragmentation. While Galaxy Digital’s selloff raised questions about short-term positioning, MicroStrategy expanded its preferred stock offering to $2 billion to fund Bitcoin acquisitions, showcasing divergent strategies among corporate treasuries [5]. Similarly, the Smarter Web Company added 225 Bitcoin for £26 million, underscoring continued corporate interest in crypto as a strategic asset [7].

The selloff also exposed vulnerabilities in leveraged trading. Over $721 million in leveraged positions were liquidated in a 24-hour period, with Bitcoin and Ethereum leading the losses. Despite this, U.S. spot ETFs saw $226 million in inflows for Bitcoin, reinforcing institutional demand amid retail volatility [8].

Bitcoin’s near-term trajectory hinges on critical support levels around $115,000. A sustained break below this threshold could trigger further margin calls, intensifying downward pressure. However, analysts caution that the broader market framework—bolstered by ETF adoption and on-chain metrics—remains intact. The event underscores the crypto sector’s sensitivity to large institutional moves while highlighting its evolving integration with traditional finance.

Source:

[1] [Bitcoin Drops, Ethereum Gains: Crypto Market Liquidations Top $500 Million Following Galaxy Digital Sell-Off](https://www.msn.com/en-us/money/markets/bitcoin-drops-ethereum-gains-crypto-market-liquidations-top-500-million-following-galaxy-digital-sell-off/ar-AA1JhGq7)

[2] [Over $500M in Longs Wiped Out as Bitcoin Slips Below $116K](https://cryptorank.io/news/feed/52772-over-500m-in-longs-wiped-out-as-bitcoin-slips-below-116k)

[3] [Bitcoin RSI Plummets as Galaxy Digital Sells $500M BTC](https://m.economictimes.com/crypto-news-today-live-25-jul-2025/liveblog/122889124.cms)

[5] [MicroStrategy to Offer $2 Billion in STRC to Fund Bitcoin Accumulation](https://beincrypto.com/microstrategy-perpetual-stock-offering-bitcoin-purchase/)

[6] [Pullback May Be a Temporary Correction Rather Than a Reversal](https://cryptorank.io/news/feed/eebd3-why-is-crypto-down-today-july-25-2025)

[7] [Smarter Web Company Adds 225 Bitcoin for $26M](https://cryptonews.com/news/smarter-web-company-adds-225-bitcoin-for-26m-total-holdings-reach-1825-btc/)

[8] [US Spot ETFs Continue Inflows Despite Volatility](https://cryptorank.io/news/feed/eebd3-why-is-crypto-down-today-july-25-2025)