Bitcoin News Today: Altcoins Trigger $751M Liquidations as Bitcoin Hits July Low

Altcoins drove a sharp sell-off in the crypto market as $751 million in long positions were liquidated over the past 24 hours, with Bitcoin falling to its lowest level since July 10. On August 1, BTC dipped below $115,000, marking a 7% pullback from its July 14 peak of $123,000. This decline came after a brief rally in early July that saw the asset surge from $110,000 to $118,000 in under 24 hours [1].

The price retreat reflects the broader instability that has characterized the crypto market in late July. Despite consolidation attempts above $118,000, Bitcoin failed to regain upward momentum, with intraday fluctuations narrowing and signaling weakening buyer interest. Some traders attributed this stall to profit-taking from early entrants and cautious positioning ahead of the FOMC’s inflation guidance, which maintained rates at 4.4% [1].

The recent correction was exacerbated by over-leveraged positioning in perpetual contracts. Liquidation data shows that more than $705 million in long positions were wiped out across major exchanges in the past 24 hours, with Binance and Bybit accounting for over two-thirds of the total [1]. These liquidations coincided with Bitcoin’s slide below $115,000, accelerating downside momentum and pushing the price to levels not seen since the July 10 rally. Over $12 million in BTC-specific liquidations occurred in a single hour, further confirming the rapid unwinding of leveraged positions [1].

The broader altcoin market mirrored Bitcoin’s losses, with Ethereum down 6.4% to $3,611, and Solana and XRP each falling more than 7% in the same 24-hour window. Market-wide long liquidations totaled over $680 million, representing more than 93% of total liquidations and highlighting an overwhelmingly long-heavy derivatives landscape prior to the correction [1]. This imbalance likely contributed to the sharp cascade, as high beta assets amplified losses amid falling BTC prices.

There is also the possibility that Bitcoin followed altcoins in this downturn, with overleveraged altcoins retracing after the July ‘alt season’ rally. The drop pushed the fear and greed index to a "neutral" reading after a recent period of "greed," signaling a shift in market sentiment [1].

Despite the sell-off, Bitcoin’s price remains up more than 8% since the start of July. Should BTC break below the $113,500–$114,000 support level, it could face a retest of early July consolidation zones near $110,000. On-chain metrics, such as declining active addresses and dropping exchange outflows, have reinforced a short-term bearish outlook according to Glassnode data [1].

The recent decline has rattled short-term sentiment, yet Bitcoin remains well above its June consolidation range near $100,000 and its 4-month low of $74,000, indicating a longer-term bullish structure amid current turbulence [1].

Source: [1] Altcoins lead crash as $751M liquidated in last 24 hours as Bitcoin falls to July low (https://cryptoslate.com/altcoins-lead-crash-as-751m-liquidated-in-last-24-hours-as-bitcoin-falls-to-july-low/)