Behind Bitcoin’s Drop to $115,000: 40,000 BTC Flood Centralized Exchanges in One Day

Summary: Bitcoin slid to a weekly low of $115,000 amid a surge in exchange inflows, with 40,000 BTC entering centralized platforms in just 24 hours. Analysts point to institutional profit-taking as a key driver of the sudden correction.

Background

Bitcoin’s price momentum has softened since peaking near its all-time high of $123,000. Over the past week, the cryptocurrency traded mostly within the $117,000 – $120,000 range, encountering resistance near the $119,000 mark. However, on Friday, July 25, BTC dipped below its recent comfort zone, hitting a new weekly low just above $115,000.

Large Exchange Inflows Signal Profit-Taking

An on-chain analysis posted to CryptoQuant by pseudonymous analyst Caueconomy reveals that approximately 40,000 BTC were transferred to centralized exchanges on Friday alone. The influx was tracked using the Bitcoin Exchange Inflow – Spent Output Value Bands metric, which identifies the volume and origin of coins being deposited into exchanges.

According to Caueconomy, the increased inflows reflect significant profit-taking activity from large entities. This coincides with Galaxy Digital’s movement of 32,448 BTC—valued at over $3.7 billion—of which 22,700 BTC were directed to exchanges, further strengthening the selloff narrative. The analyst also noted that over-the-counter (OTC) desks have been engaging with exchange order books, contributing to market pressure.

This influx pattern historically signals increased selling interest, as investors often send BTC to exchanges when looking to liquidate holdings, potentially leading to downward price pressure.

Market Resilience and Outlook

Despite the latest decline, analysts argue that Bitcoin is showing resilience by holding above the psychologically important $110,000 support level. Caueconomy remarked that the medium-term net buying trend appears intact, suggesting that bullish demand continues to support the market even as some large holders take profits.

Market watchers emphasize that such corrections are a normal part of Bitcoin’s cycle and could present accumulation opportunities if the underlying trend remains positive.

Bitcoin Price Update

At the time of writing, Bitcoin is trading at approximately $117,346, reflecting a 0.2% decrease over the last 24 hours. Data from CoinGecko shows a 7-day decline of nearly 1%, indicating modest short-term weakness amid broader market consolidation.