Bitcoin (BTC) experienced significant volatility, dropping over 2% to $116,560 amid profit-taking and a $3.5 billion sell-off by Galaxy Digital. The dip followed three consecutive days of outflows from U.S. Spot Bitcoin ETFs totaling $285.2 million, primarily from Fidelity's FBTC. However, sentiment reversed on July 24 with a $226.7 million ETF inflow, led by FBTC's $106.6 million influx.
Analysts warned of potential further declines if BTC lost the $114k support level, with Michael van de Poppe predicting a drop to $110k-$112k. Concurrently, altcoins like Ethereum (ETH) gained traction, with ETH dominance rising 3% as BTC dominance fell 4%. Despite short-term pressures, derivatives data showed resilience: Bitcoin Futures Open Interest rose 6% to $88.23 billion, and technical indicators suggested accumulation opportunities at lower levels.
By July 25, BTC surged past $117,000, driven by renewed institutional inflows, anticipation of the next halving (emphasizing scarcity), and macroeconomic hedging demand. Trading volume spiked 38% to $103.7 billion during the recovery, reflecting strong buyer conviction. Analysts highlighted $117k as a key psychological breakout, potentially establishing new support.