Bitcoin News Today: Over $560 million in crypto longs liquidated amid sharp price swings

Over $560 million in long cryptocurrency positions were liquidated within a 24-hour period, significantly impacting Bitcoin and Ethereum traders on major exchanges such as OKX and Binance [1]. The event was triggered by sharp price volatility and leveraged positions failing to meet margin requirements, leading to forced closures [2]. Ethereum experienced the largest liquidations at $96 million, followed closely by Bitcoin at $67 million [4]. The figures highlight the ongoing risks associated with leveraged trading in the crypto market, despite price gains in both BTC and ETH during the same period [2].

The liquidations primarily affected traders holding leveraged positions on major exchanges, with the sudden price adjustments causing widespread forced exits. This system-wide reaction underscores the fragility of leveraged trading in the crypto space [1]. The collapse of short positions—where traders had expected a price decline—further contributed to intraday volatility as the market adjusted to the unexpected outcome [4].

Bitcoin and Ethereum faced notable price swings during the event, with Bitcoin rising above $93,000 despite the destabilizing liquidation pressures [4]. Ethereum, meanwhile, traded at $3,810 on July 30, 2025, showing a 1.39% increase [2]. The price movements, however, did not mitigate the liquidation risks, especially for traders who had heavily leveraged their positions. Analysts warn that the event highlights the need for robust risk management strategies, particularly in derivatives and leveraged trading environments [3].

Glassnode data also reveals a long-term shift in Bitcoin ownership patterns, with mega wallets holding 40% less BTC over the past eight years—dropping from 2.7 million to 1.6 million BTC [1]. This trend suggests a redistribution of large holdings, which may reflect broader market rotations or forced selling. The structural change could influence how the market reacts to future liquidation events and macroeconomic shocks.

The effects of the liquidation extended beyond the crypto market, with related movements observed in traditional financial markets. Stocktwits reported that crypto-linked equities were also affected, signaling a growing interplay between digital assets and traditional markets [3]. This convergence is expected to intensify as institutional interest in crypto continues to rise.

Retail investors, who were noted to be cautious during the liquidation period, contributed to a more bearish short-term sentiment [3]. However, Bitcoin's ability to surpass $93,000 suggests strong underlying demand, indicating that the market remains resilient despite the immediate pressures. Analysts emphasize the need for traders to reassess their leverage usage and adopt more conservative strategies in light of persistently high volatility [4].

The event also raises questions about the broader implications for derivatives trading and regulatory oversight. While no immediate institutional or regulatory responses have emerged, the scale of the liquidations could prompt greater scrutiny of leveraged crypto trading practices in the future.

[1] title1.....................(https://www.facebook.com/groups/2028862550588932/posts/349143****998528/)

[2] title2.....................(https://pintu.co.id/en/news/186574-ethereum-price-update-today-30july2025)

[3] title3.....................(https://stocktwits.com/news-articles/markets/equity/chevron-rated-outperform-evercore-q2-earnings-retail-investors-cautious/choL93LR56p)

[4] title4.....................(https://www.instagram.com/p/DMw1HThO60t/)