Bitcoin dipped below $115,000 on July 25, 2025. This marked its lowest point in two weeks. The drop came from fading expectations for U.S. Federal Reserve interest rate cuts and large selloffs by institutions totaling $3.7 billion.
These events shook the market, leading to over $500 million in liquidations across cryptocurrencies. In the last 24 hours, Bitcoin’s price fell by about 1.8% to 2.4%, showing ongoing pressure on traders and investors.
The cryptocurrency market has been volatile this year. Bitcoin reached highs above $120,000 earlier in July, driven by strong demand and positive news. But recent shifts have changed that. Analysts point to two main reasons for the current decline. First, hopes for quick Federal Reserve rate cuts are fading. Second, big institutions are selling off their Bitcoin holdings.
Let’s break this down. The U.S. Federal Reserve sets interest rates that affect the whole economy. Lower rates make borrowing cheaper, which can boost spending and investment in risky assets like cryptocurrencies. When rates stay high, it can slow down the economy and hurt assets like Bitcoin. In recent weeks, economic data showed inflation might not be cooling as fast as expected.
This has led investors to think the Fed may delay rate cuts. One report noted that reduced liquidity from higher rates has pushed down Bitcoin prices in the past. For example, after the Fed’s actions in 2021, cryptocurrencies fell sharply. Now, with uncertainty about August meetings, traders are pulling back.
Adding to the pressure, institutions sold off $3.7 billion worth of Bitcoin. Galaxy Digital, a major crypto firm, moved about 26,100 BTC to exchanges in just 10 hours. This large transfer sparked selling across the market.
When big players sell, it often signals to others to do the same. Short-term holders also joined in, increasing the downward push. According to data, this selloff happened amid broader market worries, including potential trade tariffs and global tensions.
The result? Massive liquidations. Liquidations occur when traders’ positions are closed automatically because prices move against them. Over $500 million in positions were wiped out, with $376 million from long positions—bets that prices would rise.
Bitcoin saw the bulk of this, but other coins like Ethereum and Dogecoin also suffered. Dogecoin dropped to 7% in the same period. Total liquidations climbed to $531 million by the end of the day, showing how quickly fear can spread in crypto markets.
