Bitcoin News Today: Over $1 Billion in Crypto Liquidations as BTC and Altcoins Tumble 2.5%-9% Amid Volatility

Late July 2025 witnessed over $1 billion in cryptocurrency liquidations as Bitcoin (BTC) and major altcoins experienced sharp price declines amid heightened market volatility [1]. Bitcoin dropped more than 2.5% on July 31, reaching $114,322 following earlier losses, while altcoins like XRP, Dogecoin, and Solana faced even steeper declines—some losing more than 9% within 24 hours [1]. The market turbulence led to widespread margin calls, with leveraged traders on both long and short positions being liquidated as prices rapidly moved downward [2].

The sell-off was part of a broader market correction. Over the past 30 days, the total crypto market capitalization had fallen by 3.32%, shrinking to $3.76 trillion from earlier peaks near $3.9 trillion [3]. This continued a pattern of sharp swings, with Bitcoin trading as high as $123,000 before slipping below $117,000 in a matter of days [4]. The decline was exacerbated by global macroeconomic uncertainty, including concerns over inflation and the ongoing U.S.–China trade tensions, which contributed to a risk-off sentiment across asset classes [5].

Liquidations surged to nearly $1 billion in a 24-hour window, with the majority of the losses concentrated in long positions, particularly in BTC and ETH. Over $570 million in long positions were liquidated, reflecting growing bearish sentiment among traders and a shift in market positioning [6]. The volatility also led to renewed concerns about the stability of leveraged products and the risks they pose to both retail and institutional investors.

Ethereum (ETH) dropped by 4.4% to $3,686, while XRP briefly declined to $2.93 before recovering slightly to $2.99. The majority of altcoins also dropped by 4% or more, leading the total crypto market capitalization to fall by 6.9% in 24 hours to $3.84 trillion [1]. The crypto market’s see-saw pattern over the past two days saw traders with leveraged positions wiping out over $1 billion, with Coinglass data showing that $925.6 million in long positions had been wiped out versus $159.3 million in short positions between July 30 and August 1 [1].

The recent sell-off underscores the fragility of leveraged positions and the sensitivity of crypto markets to macroeconomic shifts. While the market has historically shown resilience and the potential for rapid recoveries, the current environment highlights the need for disciplined risk management strategies. Analysts remain cautious, with some suggesting the market is in a retracement phase and that a reversal could be on the horizon, though no forecasts have been cited for specific timelines or price levels [1].

As the market stabilizes and liquidity returns, investors will be watching for signs of renewed bullish momentum. However, in the near term, the focus remains on risk management and position sizing as traders navigate an increasingly unpredictable environment. The recent liquidation wave serves as a stark reminder of the volatility inherent in the crypto space and the need for disciplined risk strategies [1].

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Source:

[1] Bitcoin.com, [https://news.bitcoin.com/over-1-billion-in-crypto-liquidations-as-btc-and-altcoins-tumble/](https://news.bitcoin.com/over-1-billion-in-crypto-liquidations-as-btc-and-altcoins-tumble/)

[2] Barchart.com, [https://www.barchart.com/story/news/33783506/crypto-market-faces-nearly-1-billion-liquidations-ja-mining-provides-stable-dollar-based-returns](https://www.barchart.com/story/news/33783506/crypto-market-faces-nearly-1-billion-liquidations-ja-mining-provides-stable-dollar-based-returns)

[3] Coinpedia, [https://coinpedia.org/news/when-will-the-crypto-market-see-a-reversal/](https://coinpedia.org/news/when-will-the-crypto-market-see-a-reversal/)

[4] Coinpedia, [https://coinpedia.org/news/why-bitcoin-price-is-down-today-is-a-reversal-coming/](https://coinpedia.org/news/why-bitcoin-price-is-down-today-is-a-reversal-coming/)

[5] Coindoo, [https://coindoo.com/crypto-market-sinks-as-u-s-china-trade-clash-fuels-risk-off-mood/](https://coindoo.com/crypto-market-sinks-as-u-s-china-trade-clash-fuels-risk-off-mood/)

[6] 99Bitcoins, [https://99bitcoins.com/news/altcoins/live-crypto-news-today-next-crypto-to-explode-crypto-market-is-down-but-whales-keep-accumulating-eth-as-xrp-price-retests-support-level/](https://99bitcoins.com/news/altcoins/live-crypto-news-today-next-crypto-to-explode-crypto-market-is-down-but-whales-keep-accumulating-eth-as-xrp-price-retests-support-level/)