Bitcoin News Today: Over $107M in crypto positions liquidated as Bitcoin dips below $116k; Tether mints $2B USDT amid volatility

Over $107 million in cryptocurrency positions were liquidated within a single hour as Bitcoin (BTC) prices fell below $116,000, according to recent data. Of this total, approximately $105.59 million came from long positions, indicating a significant shift in market sentiment amid a sharp price correction. The dip, which saw BTC trading as low as $115,164, wiped out gains from previous days when the asset had approached $120,000. The rapid liquidation highlights the volatility inherent in leveraged trading strategies, particularly during periods of sharp price swings [1].

Tether, the company behind the USDT stablecoin, responded to the market turmoil by minting $2 billion in USDT within the same hour, bringing its total monthly issuance since July 1, 2025, to $7 billion. The surge in stablecoin creation suggests increased demand for liquidity, which traders often use to hedge against market downturns or fund new positions. Analysts have interpreted the move as a bullish signal, noting that Tether’s aggressive minting typically coincides with periods of market optimism or significant price action [1].

The liquidation event occurred as BTC appeared to be closing a technical gap in the $114,000–$115,000 range, a pattern observed in previous price cycles. While the short-term decline caught traders off guard, the swift response from Tether and the broader market’s resilience have led some to anticipate a rebound. The crypto market’s total capitalization, which remained near $2.3 trillion during the volatility, demonstrated the sector’s capacity to absorb such corrections without triggering a broader bearish trend [1].

The interplay between liquidations and stablecoin issuance underscores the dynamic nature of crypto markets. Large-scale liquidations often reflect a mix of panic selling and algorithmic trading responses to price gaps. Meanwhile, Tether’s actions highlight the role of stablecoins as both a buffer against volatility and a tool for capital deployment. The $2 billion minting could signal a growing appetite for crypto exposure, either through rebalancing leveraged positions or entering the market at perceived undervalued levels [1].

Market participants have drawn parallels between this event and previous bullish phases in crypto history, where temporary dips were followed by renewed upward momentum. The timing of Tether’s issuance, coupled with the liquidation of predominantly long positions, suggests that traders may be preparing for a rebound. However, the outcome will depend on whether the market can reassert itself above key resistance levels, such as the $116,000 mark, to reignite confidence [1].

Source: [1] [Tether Mints $2 Billion USDT as Over $107M Gets Liquidated in an Hour, $105.59M From Long Positions] [https://cryptonewsland.com/tether-mints-2-billion-usdt/]