Here’s Why Bitcoin Price is Going Down

The Bitcoin price crashing down 5% from the new ATHs proves the uncertainty in the financial markets. In the move from $123k milestone to the $116k, investors’ changing sentiments are to blame. Although the minor consolidation past this milestone is expected, the drop was too sudden, impacting the broader crypto market.

Top Reasons Why Bitcoin Price is Going Down

Investors’ sentiments and trading activities are the strongest factors for the performance of a digital asset. The Bitcoin price is affected by the same, as the crypto market witnesses massive sell-off and profit-taking activities, especially among the larger whales.

• Bitcoin Whale Sell-Off

The MPI, tracking miner outflows ratio to a one-year moving average, crossed 2, suggesting miners are selling their holdings, resulting in a correction. Exchange netflow also aligns with MPI reading, as CoinGape experts noted that a Satoshi-era Bitcoin wallet transferred 9,000 BTC on July 14, followed by another 7,843 BTC on July 15, 2025.

With nearly $2B worth of tokens transferred to Binance/ Bybit, a strong sell-side pressure formed.

• Macro Events and Liquidation Crashing BTC Price

The beginning of Crypto Week and other market key events like the release of US CPI, PPI, and other data also influenced the sell-off. As a result, BTC plummeted below the $118k support level, currently trading at $116.4k with $2.31T in market capitalization. Additionally, the liquidation of nearly $400M in long positions occurred within 4 hours.

In the last 24 hours, the total liquidation mark hit $500M, liquidating 130,573 traders.

• Technical Factors & Investor Sentiments

There’s also a technical context, as the rally extended for days. The token is officially in the overbought territory, and MACD is showcasing a bullish crossover but slowing momentum.

Santiment also reported on July 14 that the speculations around the Bitcoin price crash are rising as investors await better entry points. Besides, there are signs of disbelief and trader fatigue, resulting in profit-taking and a crash today.

🤯 Bitcoin’s historic all-time high run now stands at just north of $123.2K with long-term investors and FOMO’ers getting rewarded with a +21% price surge in just 3 weeks.

Despite plenty itching to get in, there has been a common narrative growing that $BTC will fall down to… pic.twitter.com/29lPCHY8l8

— Santiment (@santimentfeed) July 14, 2025

Altcoin Rotation Challenges Bitcoin Price

With the semi-bullish conditions, the investors’ sentiments have officially entered the greed zone. The Altcoin Seasons Index surged nearly 45% over the week, and the speculation of Altseason increases, fueling the capital rotation from BTC to other digital assets.

Another prominent factor is Bitcoin dominance, which worked against the price rally. It has declined from a June high of 65.1% to 63.5%, confirming the shift. However, the altcoin season is still far, as Arthur Hayes and other experts cite it as a mini-season. Besides, the metrics aren’t enough to pump the Altseason but are enough to divert capital from BTC to others, affecting its price.

Overall, the whale sell-off and leverage unloading have resulted in the crash. However, experts like Crypto Express call it a pullback to fill the CME gap between 115,635 and 114,380 before igniting another massive rally.