$729 million liquidated in crypto market in 24 hours, $579M long, $149M short.

$729 million liquidated in crypto market in 24 hours, $579M long, $149M short.

Title: Crypto Market Sees $729 Million in Liquidations Over 24 Hours

The cryptocurrency market experienced a significant wave of liquidations on July 25, 2025, with a total of $729 million in positions liquidated. According to CoinGlass data, $579 million of these liquidations were from long positions, while $149 million were from short positions [1].

Bitcoin (BTC) was the most impacted, with $585.86 million in long positions liquidated as its price dropped 2.63% to $115,356. This decline pushed Bitcoin below the $116,000 mark, triggering a substantial sell-off and liquidations among over-leveraged positions [1]. Ethereum (ETH) also saw significant liquidations, with $104.76 million in long positions wiped out as its price fell 1.33% to $3,598 [1].

The downturn in the crypto market was not limited to Bitcoin and Ethereum. Altcoins like Dogecoin (DOGE) also experienced substantial losses, with a 7% drop to $0.22 and $26 million in long positions liquidated [1]. The overall market saw 731.93 million in total liquidations, affecting 213,729 traders [1].

The liquidations highlight the vulnerability of leveraged positions, particularly in the wake of Bitcoin's July 14 all-time high of $123,100. Despite the pullback, the Crypto Fear & Greed Index remains at a "Greed" score of 70, indicating lingering bullish sentiment [1]. However, technical indicators and on-chain metrics paint a more cautious picture. Bitcoin's price action has tested the $116,000–$120,000 range, a critical battleground for bearish and bullish forces [1].

Institutional investors have maintained a mixed approach, with $6.6 billion in ETF inflows recorded in late July despite a $131.35 million outflow earlier in the month. Entities like MicroStrategy continue to accumulate Bitcoin as a strategic reserve asset. Retail sentiment, however, has sharply deteriorated, with weighted sentiment dropping below -1.03 and social dominance sinking to 27%, levels last seen in late 2024 [1].

The altcoin market has surged amid Bitcoin’s consolidation, with a $216 billion rise in market cap over two weeks—the largest increase on record. Ethereum has emerged as the primary beneficiary, with open interest dominance hitting 38%, its highest since April 2023, and perpetual trading volumes surpassing Bitcoin’s for the first time since 2022 [1]. Solana, XRP, and smaller-cap tokens like UNI have also seen open interest swell by $18 billion in July alone. However, altcoin open interest has exceeded the +2 standard deviation threshold for leverage for 12 consecutive days, raising concerns about overbought conditions and potential corrections [1].

For individual investors, the key takeaway is diversification. Portfolios overly concentrated in Bitcoin or high-leverage altcoins face heightened exposure to liquidity shocks. Dollar-cost averaging, stop-loss orders, and stablecoin hedges are increasingly essential tools in this environment. The Altcoin Season Index, now near 50, suggests early-stage capital rotation but also highlights the market’s susceptibility to overbought conditions [1]. The path forward hinges on Bitcoin’s ability to reclaim the $120,000 level. A sustained breakout could propel altcoins further, with Ethereum and Solana likely leading the charge. Conversely, a breakdown below $116,000 risks triggering a cascading sell-off, particularly among leveraged altcoins [1].

References

[1] https://www.ainvest.com/news/bitcoin-news-today-bitcoin-plummets-2-63-116k-585-86m-crypto-longs-liquidated-2507/