The decline of Bitcoin below $118,000 has attracted attention to market instability and potential regulatory changes in the U.S. Key factors include profit-taking by large holders and expectations of a new regulatory report.
Reasons for Bitcoin's Decline
Bitcoin dropped by 0.13% in late July 2025, attributed to profit-taking by significant holders. These 'whales' have started moving their assets to exchanges, marking a pre-correction phase.
Regulatory Implications
The anticipation of a report from the White House has intensified market caution. There has been a reported rise in institutional profit-taking. A forthcoming report is expected to clarify federal regulatory policy regarding digital assets. As stated by White House crypto advisor Bo Hines, 'The report will outline how the government intends to manage seized Bitcoin reserves and offer a federal regulatory framework for digital assets.'
Impact of Whales on the Market
Recent whale activities led to approximately $700 million in leveraged BTC liquidation, with 85.3% attributed to long positions. This process is expected to create volatility in the market, but there is a possibility that the market may stabilize before shifting to support levels, especially considering the upcoming regulatory news.
In conclusion, the attention to whale activities and impending regulatory changes highlights the current instability of the cryptocurrency market. Bitcoin remains a vital indicator for other digital assets and continues to attract interest for in-depth analyses.
