Bitcoin Plunges Below $116K as Galaxy Digital Offloads $1.18B and ETF Support Fades
Bitcoin (BTC-USD) is reeling from a sharp selloff, plunging as low as $114,800 intraday before bouncing modestly to $115,045.10 as of 15:04 UTC. The 3% drop in the last 24 hours came after news broke that Galaxy Digital had dumped $1.18 billion worth of BTC into the market, triggering widespread liquidation and panic selling. This move shattered the prior $116,000 support range, marking Bitcoin’s worst daily candle since early June and wiping out $50 billion in total market cap in under 6 hours. The selloff wasn’t isolated — liquidity vanished on major exchanges, with Binance order books showing a $9.4 million gap between $115,200 and $114,500. That thin support zone now risks a rapid breakdown if institutional outflows continue. Cointelegraph and FXLeaders confirm sentiment flipped bearish globally following the Galaxy sell print, which insiders now say was executed to rebalance their crypto fund exposure amid rising yield pressure.
ETF Flows Show Cracks as Spot Demand Dries Up and Redemptions Accelerate
Bitcoin ETF flows — previously a stabilizing force — have turned negative for the third consecutive session. IBIT saw just $4.9 million in net inflows, while GBTC posted $38 million in outflows, with FBTC and ARKB flat. Combined net redemptions reached $52.7 million on Thursday alone, the weakest showing since early May. The 5-day flow average has now turned negative at -$17.3 million/day, a major reversal from +$88 million/day just two weeks prior. This dramatic shift signals that institutional players are not only taking profits but potentially reallocating into alternative strategies like ETH staking or treasury-linked DeFi products. With macro liquidity tightening and Bitcoin ETFs no longer absorbing sell pressure, the lack of passive inflow left BTC exposed to a violent unwind.
Whales Exit Quietly as Exchange Wallet Inflows Hit 7-Week High
On-chain data confirms large-balance wallets are reducing exposure. Addresses holding over 10,000 BTC have transferred a net 6,120 BTC to exchange-linked wallets in the past 48 hours. Binance and Bitfinex received the bulk of that flow, with Coinbase Prime also recording $640 million in BTC deposits — mostly from OTC desks. The largest individual transfer was a 1,922 BTC lump sum from a previously dormant wallet inactive since 2022. Meanwhile, wallets in the 100–1,000 BTC tier are neutral, suggesting mid-sized holders are waiting for volatility to subside. This pattern of high-balance sell-side reactivation — without matching accumulation at lower tiers — reflects breakdown in long-term holder conviction at current prices.
Technical Breakdown Intensifies as BTC Breaches 21-Day EMA and VWAP Support
Bitcoin’s failure to hold $116,700 triggered a clean break below its 21-day EMA ($117,200), which had served as a pivot since mid-June. Price action also fell through the 30-day VWAP anchored to the May 24th bottom, now invalidating the short-term bullish channel. The next visible support sits at $112,300, where the June breakout consolidated for three sessions, followed by heavier accumulation zones around $109,000. Resistance is now stacked at $117,800 and $119,600 — prior swing highs from earlier in July. Momentum signals turned sharply bearish, with RSI falling to 41.2 and MACD rolling over. Implied volatility jumped 8.7% in 12 hours as options traders rushed to hedge, and liquidations on perpetuals reached $142 million. There is no sign of technical exhaustion yet, and bulls need a close above $118,000 to regain footing.
Macro Liquidity Squeeze Deepens as U.S. Yields and Dollar Rise in Tandem
Global macro conditions continue to suppress risk appetite. U.S. 10-year yields climbed to 4.31%, while real yields on 5Y TIPS rose to 2.29%, the highest since March. The DXY Dollar Index surged past 105.00 intraday, reflecting safe-haven flows and unwinding of yen carry trades. Fed officials, including Waller and Bowman, reiterated that rate cuts remain "premature," squashing hopes of September easing. Bitcoin’s inverse correlation to real yields remains acute, with -0.81 correlation over the last 30 days, intensifying its vulnerability in this environment. Money market funds pulled in another $36 billion last week, confirming that cash preference is overtaking speculative allocation. Until Treasury yields normalize or the Fed pivots, Bitcoin faces persistent macro headwinds.
Derivatives Market Shows Rising Bearish Pressure as Funding Rates Flip Negative
Futures funding rates turned negative on Binance (-0.013%) and Bybit (-0.011%), signaling dominance of short positioning. Open interest fell $2.3 billion in the past 24 hours, with $984 million of that cleared in the past 6 hours alone — the fastest deleveraging burst since the March low. Options dealers scrambled to rebalance, pushing 7-day skew to -6.8%, while the 25-delta put/call ratio reached its most bearish reading since April 30. Traders are now pricing a 38% chance BTC trades below $110K by end of next week, based on CME option probabilities. Market depth has collapsed on both sides, with order books showing just $34.1 million in liquidity within 1% of mid-price, compared to $94 million at Monday’s open.
Verdict: Sell — Structural Break, ETF Outflows, and Whale Exit Point to Lower Lows
This is no ordinary pullback. Bitcoin just lost its key technical levels, ETF flows have flipped net negative, whales are rotating out, and macro pressure is mounting. There is no near-term bullish catalyst, and current liquidity conditions favor further downside. Unless ETF inflows reverse course or Treasury yields collapse — neither of which look likely in the short term — Bitcoin is exposed to deeper retracement toward $112K and potentially $109K. BTC-USD is a Sell — risk is skewed heavily to the downside, and the tape has flipped decisively bearish.
