Bitcoin News Today: Bitcoin Plummets Below $114,000 Triggering $863M Liquidation Wave

Bitcoin faced a dramatic sell-off on July 20, 2025, as prices tumbled below the $114,000 level, triggering one of the most severe liquidation waves in recent months. According to on-chain data, the drop led to over $863 million in losses, primarily from leveraged long positions in BTC and Ethereum (ETH) futures [1]. Traders experienced heavy margin calls and forced position closures as rapid price depreciation accelerated the selling pressure.

The sharp correction came amid heightened market volatility and mixed macroeconomic signals. The $114,000 level, once considered a key psychological support for Bitcoin, failed to hold, exposing the vulnerability of leveraged long positions. The liquidations were concentrated in BTC and ETH futures contracts, where algorithmic trading and aggressive short-covering further intensified the downward spiral [1]. The incident highlighted the growing interdependence between spot and derivatives markets, where large liquidation events can create self-reinforcing cycles of selling.

The $863 million loss underscores the risks of speculative trading using high leverage, which can magnify the effects of sudden price movements. Analysts noted that the ongoing bearish sentiment in the derivatives market, combined with broader macroeconomic uncertainties, may have contributed to the volatility. However, no specific forecasts were provided in the report to indicate whether the move represents a temporary correction or a shift toward a longer-term bearish trend [1].

The event serves as a stark reminder of the fragility of leveraged positions in the cryptocurrency market, particularly during periods of heightened volatility. As the market continues to evolve, such corrections may become more common, emphasizing the need for robust risk management strategies for traders and investors.

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Source:

[1] Bloodbath: Bitcoin Shudders Below $114K, BTC and ETH Longs Lead $863M Liquidation Wave – News Bytes Bitcoin News

(https://news.bitcoin.com/bloodbath-bitcoin-shudders-below-114k-btc-and-eth-longs-lead-863m-liquidation-wave/)