Digital currency Bitcoin is facing a decline, leading to roughly $140 million in liquidated holdings
In the crypto market, the past week has been marked by turbulence, with Bitcoin experiencing a significant correction on July 25, 2025. This sharp price drop, which saw Bitcoin fall below $115,000, resulted in over $140 million in liquidations.
The decline follows a period of relative stability and recovery in the crypto sector. However, the market's volatility, coupled with geopolitical uncertainty, ended this period of calm. The crypto market remains sensitive to macroeconomic and geopolitical conditions, and recent events are a testament to this.
Large-scale institutional sell-offs played a significant role in the price drop. Notably, Galaxy Digital transferred around 3,420 BTC (worth approximately $395 million) to exchanges, increasing selling pressure and market volatility. Profit-taking by traders also contributed to the price dip, as investors locked in gains following Bitcoin’s recent peak near $123,000.
Speculation and risk-off sentiment ahead of significant U.S. Federal Reserve policy decisions and an impending White House crypto policy report also weighed on traders' risk appetite. The anticipation caused traders to reduce leveraged long positions to manage risk, contributing to liquidations.
Technical market factors such as liquidity constraints, imbalances in order books, and fluctuations in trading volume exacerbated price swings. The price breach below the $118,000 support level, a consolidation point for much of July, further accelerated the downward momentum.
The macroeconomic context, notably stronger-than-expected U.S. jobs data that reduced hopes for Fed interest rate cuts, weakening investor appetite for risk assets, including Bitcoin.
Investors are advised to exercise caution and discipline, focusing on long-term strategies. Despite the recent market volatility, the crypto ecosystem retains a strong growth potential due to technological innovations, growing adoption, and increasing institutional interest.
Gaston Cuny, a writer with a passion for cryptocurrencies, shares his knowledge and findings about the crypto ecosystem via various platforms. As a seasoned cryptocurrency enthusiast since 2020, Gaston remains optimistic about Bitcoin and other cryptocurrencies' role as key assets in the years to come.
[1] Coindesk. (2025). Bitcoin Drops Below $115,000, Triggers Over $140 Million in Liquidations. [online] Available at: https://www.coindesk.com/markets/2025/07/25/bitcoin-drops-below-115000-triggers-over-140-million-in-liquidations/
[2] Cointelegraph. (2025). Bitcoin Drops Below $115,000: What Happened? [online] Available at: https://cointelegraph.com/news/bitcoin-drops-below-115000-what-happened
[3] Bloomberg. (2025). U.S. Jobs Report Boosts Dollar, Saps Appetite for Risk Assets. [online] Available at: https://www.bloomberg.com/news/articles/2025-07-25/us-jobs-report-boosts-dollar-saps-appetite-for-risk-assets
- The recent Bitcoin price drop, coupled with liquidations exceeding $140 million, can be attributed to a combination of factors including institutional sell-offs, profit-taking by traders, geopolitical uncertainty, and technical market factors.
- Despite the crypto market's volatility, Gaston Cuny, a passionate cryptocurrency writer, remains optimistic about Bitcoin's role as a key asset in the future, citing technological innovations, growing adoption, and increasing institutional interest as factors supporting its long-term growth potential.
