Bitcoin News Today: Bitcoin Drops 2.27% to $115,000 as $155M Longs Liquidated, Algorithmic Triggers Fuel Slide

Bitcoin’s price experienced a significant decline on July 25, 2025, falling to $115,000—a 2.27% drop from its previous level—as leveraged traders faced massive liquidations. Over $155.28 million in derivative positions were wiped out, with long positions accounting for the majority of losses at $139.78 million compared to $15.50 million in short positions. The imbalance underscores the overexposure of bullish traders who anticipated a sustained upward trend but were unprepared for the abrupt reversal [1]. The price plunge followed a failed attempt to retest the $119,000 resistance level earlier in the session, triggering a cascade of algorithmic sell orders that accelerated the decline by nearly $3,000 within hours.

The market’s volatility intensified as Bitcoin’s 24-hour trading volume surged by 26% to $84.97 billion. Panic selling and forced liquidations fueled this spike, despite the broader market cap remaining stable at $2.3 trillion, with a fully diluted valuation of $2.42 trillion [1]. Analysts attributed the sharp drop to overcrowded long positions and algorithmic triggers near key resistance zones, which exacerbated the sell-off. While the long-term bullish trend for Bitcoin remains intact, traders are being urged to refine risk management strategies amid persistent volatility.

The price action lacks a clear fundamental catalyst, leading market observers to speculate that stabilization could occur once liquidation pressures subside. According to the analyst’s forecast, Bitcoin might dip further to $115,000 to absorb liquidity, citing order flow imbalances at that level [2]. However, this projection reflects speculative positioning rather than an analysis of intrinsic value. Investor sentiment remains cautiously watchful, with the episode serving as a stark reminder of Bitcoin’s volatility—even at elevated price levels.

The sharp drop and disproportionate long-side liquidations have reignited discussions about leverage use and market psychology in crypto trading. The circulating supply of Bitcoin remains stable at 19.89 million BTC out of a max cap of 21 million, with no immediate catalysts identified for the selloff. Market watchers anticipate clarity after derivatives markets reset and weekend trading volume sets the tone for the next directional move [1].

Source:

[1] [Bitcoin Drops to $115000 as Liquidations Top $155 Million](https://coindoo.com/bitcoin-drops-to-115000-as-liquidations-top-155-million/)

[2] [Cryptocurrency news, analysis, price predictions](https://coindoo.com/)