Bitcoin Faces Profit-Taking as Lawmakers Gear Up for ’Crypto Week’ – Key Market Shifts Analyzed
- Why Did Bitcoin Drop Below $109,000?
- What’s Driving the "Crypto Week" Regulatory Push?
- How Are Macro Factors Influencing Crypto Sentiment?
- FAQ: Your Bitcoin Market Questions Answered
Bitcoin dipped below $109,000 amid whale movements and regulatory anticipation, yet maintains an 85% yearly gain. Two dormant wallets moved 20,000 BTC ($2.18B), sparking market jitters. Meanwhile, US lawmakers prepare for "Crypto Week" (July 14–18) to debate stablecoin rules and CBDC oversight. Analysts highlight key support levels and macroeconomic pressures.
Why Did Bitcoin Drop Below $109,000?
Bitcoin briefly retreated to $108,700 on July 4, 2025, after two "sleeping whale" wallets transferred 20,000 BTC ($2.18B) in a single morning. Lookonchain data reveals:
- A 2011 wallet (10,000 BTC bought at $0.78) moved its entire balance, now worth $1.09B – a 140,000x return.
- Another 14-year-dormant address transferred 10,000 BTC ($1.09B) simultaneously.
- Spot Bitcoin ETFs and corporate treasuries continue accumulating, but the sudden supply surge briefly rattled confidence.
- BTC remains 85% up year-over-year, trading just 3% below its $112,000 ATH.
- Analysts note synchronized whale moves may signal coordinated profit-taking.
Source: TradingView charts show BTC’s 24-hour volatility spiked to 4.2% during the transfers.
What’s Driving the "Crypto Week" Regulatory Push?
US lawmakers will debate three pivotal bills during July 14–18:
| Bill Focus | Key Players | Potential Impact |
|---|---|---|
| Market Structure Reform | House Financial Services Chair | Clearer exchange classifications |
| Stablecoin Rules | Agriculture Committee Chair | Reserve requirements for issuers |
| CBDC Restrictions | House Speaker | Consumer privacy protections |
The BTCC research team observes: "This could establish the first comprehensive US crypto framework – or trigger volatility if debates turn contentious."
How Are Macro Factors Influencing Crypto Sentiment?
Beyond Bitcoin’s technicals, broader pressures loom:
- Interest Rates: The Fed’s 5.25% benchmark strains risk assets.
- Banking Sector: Regional bank instability fuels demand for decentralized alternatives.
- Geopolitics: US-China tech tensions impact semiconductor-reliant mining operations.
- Corporate Adoption: 43% of S&P 500 firms now hold BTC, per CoinGlass.
- Derivatives: Open interest in BTC futures dipped 7% post-whale moves.
Source: DepositPhotos
FAQ: Your Bitcoin Market Questions Answered
How often do dormant Bitcoin wallets activate?
Per Lookonchain, 5-10 major dormant wallets (>1,000 BTC) MOVE monthly, typically during price peaks.
Could "Crypto Week" laws affect Bitcoin’s price?
Historical data shows regulatory events cause 10-15% swings, but long-term trends dominate.
What’s Bitcoin’s key support level now?
$105,000 (50-day MA) and $100,000 psychological level are critical, says BTCC’s lead analyst.
