Bitcoin News Today: Bitcoin drops to $112,000 triggering $1.5B in liquidations amid macro fears and ETF outflows

Bitcoin's recent sharp decline to $112,000 over the weekend triggered over $1.5 billion in liquidations on Binance, according to data as of July 17 [1]. The sell-off, driven by macroeconomic concerns and ETF outflows, saw retail traders panic-selling near local lows, a pattern historically associated with the bottoming of a market cycle.

The drop pushed Binance’s cumulative net taker volume—indicative of aggressive buying or selling—to -$1.5 billion, the lowest since July 25 [1]. This negative figure reflects the scale of forced liquidations, with BTC falling nearly $7,000 in a short span. Analyst Amr Taha from CryptoQuant noted that retail investors tend to sell near market bottoms, reinforcing the idea that this panic may precede a recovery.

Funding rates across major exchanges turned negative in late July, signaling an increase in short positioning [1]. This shift, combined with broader macroeconomic headwinds such as weak U.S. jobs data and renewed Trump-era tariffs, intensified risk-off sentiment in the market. At the same time, ETF outflows reached their largest single-day drop since February, compounding pressure on digital assets.

Despite the volatility, Bitcoin closed July at a record high [1]. Options traders have already begun positioning for a potential rebound, showing interest in call spreads targeting $124,000 by late August. Institutional players are also viewing the downturn as a buying opportunity, supported by ongoing structural factors such as regulatory clarity and stablecoin adoption.

Bitcoin's price as of press time stood at $114,396, up slightly in the last 24 hours. While the asset remains 3.9% lower on the week, it has rebounded from its weekly low, suggesting a typical “shakeout” pattern that often precedes fresh accumulation [1]. Ethereum and Solana also showed signs of recovery, with ETH bouncing from $3,400 to $3,550. Some smaller altcoins, such as XLM, ENA, and HASH, outperformed BTC with double-digit rebounds, boosting the total crypto market cap by $60 billion since Sunday.

Analysts at QCP Capital argue that the current conditions could be remembered as a classic “buy-the-dip” opportunity if ETF inflows resume and funding rates return to normal [1]. However, the road to recovery remains clouded by macroeconomic uncertainties. All eyes are now on Bitcoin’s $115,000 level, with a decisive break above it potentially shifting sentiment from capitulation to cautious optimism.

Source: [1] Binance $1.5B Liquidations and Negative Funding Rates ... (https://cryptopotato.com/binance-1-5b-liquidations-and-negative-funding-rates-hint-at-market-bottom/)