Bitcoin News Today: Over $800M in Leveraged Crypto Positions Liquidated Amid Sharp Price Correction

Over $800 million in leveraged crypto positions were liquidated across global markets within a 24-hour period, marking one of the largest corrections in recent months [1]. Bitcoin and Ethereum were the most affected, with $200 million and $251 million in liquidations recorded, respectively [2]. The wave of liquidations followed a sharp price correction, exacerbated by renewed macroeconomic concerns, including U.S. tariff signals and uncertainty over interest rate policy [3].

Traders on major exchanges such as Binance and OKX bore the brunt of the losses, with a single Ethereum trade on Binance alone accounting for $13.79 million in liquidations [4]. According to Coinglass, long positions were overwhelmingly hit, with over $71.83 million in long liquidations recorded within a single hour, compared to just $11.97 million for short positions [5]. This imbalance underscores the concentrated risk in leveraged long positions during downward market swings.

The liquidations coincided with Bitcoin hitting a three-week low, signaling a broader selloff driven by profit-taking and heightened risk-off sentiment [6]. The correction followed a period of rapid price gains that attracted speculative traders with leveraged exposure. As positions unwound, market liquidity and volatility shifted dramatically, compounding the losses for traders who had overextended their leverage.

Analysts suggest that large-scale liquidation events can act as inflection points for the market, potentially resetting funding rates and reducing over-leveraged exposure [5]. However, whether this correction will evolve into a sustainable market bottom or signal the beginning of a prolonged bearish phase remains to be seen. Key indicators such as volume spikes, support level behavior, and RSI readings will be critical in determining the next phase of the market cycle.

With over 188,000 traders impacted by the liquidations, the incident highlights the extreme volatility and speculative nature of the current crypto environment [5]. The lack of public statements from key industry leaders further emphasizes the market’s reliance on algorithmic trading and on-chain metrics rather than traditional leadership during such events.

Source:

[1] The Defiant. [title] Crypto Markets Pull Back amid Macro Worries

https://thedefiant.io/news/markets/crypto-markets-pull-back-after-strong-july-gains

[2] The Crypto Times. [title] Crypto Market Sees $802M in Liquidations as Bullish Bets Unwind

https://www.cryptotimes.io/2025/08/01/crypto-market-sees-802m-in-liquidations-as-bullish-bets-unwind/

[3] The Crypto Times. [title] Crypto Market Sees $802M in Liquidations as Bullish Bets Unwind

[4] Bitcoin Magazine. [title] $713 Million Worth Of Bitcoin And Crypto Longs Liquidated ...

https://bitcoinmagazine.com/news/713-million-worth-of-bitcoin-and-crypto-longs-liquidated-as-bitcoin-price-dips-below-114000

[5] The Crypto Times. [title] Crypto Market Sees $802M in Liquidations as Bullish Bets Unwind

[6] Bloomberg. [title] Bitcoin Pulls Back to Three-Week Low After Record ...

https://www.bloomberg.com/news/articles/2025-08-01/bitcoin-pulls-back-to-three-week-low-after-record-breaking-july