Bitcoin News Today: Bitcoin, Major Altcoins Drop 0.6% as Low-Cap Tokens Surge 60-134% on Speculative Capital Shift

Bitcoin and major altcoins experienced a 24-hour decline amid reduced investor activity, while low-cap tokens surged as capital flowed into speculative opportunities. Bitcoin (BTC) fell 0.6% to $118,770, stabilizing above the $118,000 threshold but showing increased selling pressure. Ethereum (ETH) dropped 0.6% to $3,803.90, with Lido Staked Ether (STETH) matching the decline at $3,800.77. Solana (SOL) and Dogecoin (DOGE) declined 0.4% and 0.8% respectively, with DOGE trading at $0.228 as momentum waned. Binance Coin (BNB) fell 0.7% to $832.75, reflecting ongoing subdued demand for Binance-linked assets. XRP (XRP) slipped 0.5% to $3.14 [1].

The broader market saw Bitcoin’s dominance shrink to 60.57% from earlier highs, as capital rotated toward smaller-cap altcoins [2]. Over $1.1 billion in long positions were liquidated in centralized derivatives markets between July 23-24, with altcoins accounting for a disproportionate share of liquidations. Open interest (OI) in altcoins surged to $44 billion from $26 billion since early July, reflecting aggressive speculative positioning despite heightened leverage risks [1].

Low-cap tokens outperformed, with Qkacoin (QKA) leading the rally by rising 134.4% to $2.45, driven by retail enthusiasm. Pepe Bundle (PUNDLE) jumped 60.6% to $0.04606, while Ribbita by Virtuals (TIBBIR) and Block (BLOCK) gained 36.4% and 29.5% respectively. The gains were attributed to speculative demand and thin order books, amplifying price volatility [1]. Analysts noted that leveraged long positions in smaller tokens remain vulnerable to sudden deleveraging, with a modest pullback or negative headlines potentially triggering cascading liquidations [1].

Bitcoin’s 24-hour drop of 1.07% to $118,188.43 highlighted broader market fragility, as Ethereum’s OI dominance rose to 26% from 17% in three months. The altcoin market cap expanded despite the top assets’ declines, with Bitcoin’s $2.35 trillion market cap contrasting against the total crypto market’s $3.88 trillion value [1].

Speculative narratives further intensified, with Google’s Gemini AI model predicting strong year-end surges for XRP and Shiba Inu [4]. However, immediate risks include liquidity crunches and overleveraging in smaller tokens, where rapid capital rotation has created crowded positions. Traders on platforms like Binance, Bybit, and Gate saw sharp spikes in OI, underscoring aggressive risk-taking [5].

Market observers emphasized the need for disciplined risk management, particularly as leveraged positions in altcoins reach historic levels. While Bitcoin stabilized near $114,800 after a 5% three-day decline, altcoin exposure remains sensitive to sentiment shifts. The coming days will likely test Bitcoin’s $114,800 support level as leverage-driven volatility persists [1].

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Sources:

[1] https://cryptoslate.com/bitcoin-steadies-near-114800-but-fragility-risk-rises-as-leverage-climbs/

[2] https://zerocap.com/insights/weekly-crypto-market-wrap/weekly-crypto-market-wrap-28th-july-2025-2/

[4] https://www.tradingview.com/news/cryptonews:372c62f8f094b:0-google-s-gemini-ai-predicts-the-price-of-xrp-shiba-inu-and-pepe-by-the-end-of-2025/

[5] https://www.mitrade.com/au/insights/news/live-news/article-3-989482-20250727