Bitcoin News Today: Bitcoin Drops 2% Below $115K Triggering $140M in Long Liquidations in 24 Hours

Bitcoin’s latest price action has sent shockwaves through the cryptocurrency market, as the digital asset plunged below the $115,000 threshold after a brief flirtation with $120,000. The rapid 2% decline in BTC’s value over 24 hours triggered a cascade of liquidations, wiping out over $140 million in leveraged long positions. This volatility, tracked in real time by platforms like Bitstamp and Coinglass, underscores the precarious balance of leverage in crypto derivatives trading. At its lowest point on July 25, Bitcoin briefly dipped to $114,518, a level not seen in nearly two weeks, before recovering to $116,000. However, the damage had already been done: Coinglass data revealed that BTC longs accounted for nearly half of the $382 million in total long liquidations during the same period, highlighting the concentration of risk in overextended positions [1].

The sudden drop exposed the fragility of leveraged trading strategies, particularly for traders who had established positions at higher price levels. Over 142,437 traders faced liquidation within 24 hours, with long positions making up 70% of the $531.69 million in total losses. Analysts note that such volatility is inherent to Bitcoin’s market structure, where algorithmic trading and leveraged positions amplify price swings. The collapse in BTC’s value was swift enough to trigger margin calls, leaving many traders scrambling to adjust exposure or cut losses [2].

While the immediate catalyst for the sell-off remains unclear, the event aligns with Bitcoin’s historical pattern of sharp intraday movements. The absence of a single, identifiable trigger suggests that the decline was likely driven by a combination of profit-taking after a recent rally and broader macroeconomic pressures. The price action also highlights the psychological impact of key support levels, as traders now face the challenge of reestablishing confidence after the $115,000 threshold was breached.

The broader crypto market mirrored BTC’s turbulence, with Solana (SOL) and Dogecoin (DOGE) each losing over 2% in value. However, Ethereum (ETH) bucked the trend, gaining nearly 2% amid the chaos. BNB, having recently hit an all-time high of $808, edged up 0.9%, illustrating the divergent performance of major assets during periods of systemic stress. Despite these fluctuations, Bitcoin’s underlying network remains resilient, with long-term adoption trends and blockchain infrastructure development continuing unaffected [3].

The episode has reignited debates about risk management in crypto trading. Derivatives platforms have reported heightened activity as traders adjust positions to mitigate further losses, though the exact implications for market stability remain uncertain. The liquidation of longs at this level could act as a psychological barrier for future price rebounds, as it demonstrates the concentration of risk at critical price thresholds. For now, the market appears to be in a state of recalibration, with traders and institutions likely to scrutinize their exposure more closely in the coming weeks as Bitcoin tests key support levels.

Sources:

[1] [BTC Dives Below $115K, $140M in Longs Liquidated](https://news.bitcoin.com/bitcoin-whiplash-btc-dives-below-115k-140m-in-longs-liquidated/)

[2] [BTC Se Propadá Pod $115K, $140M v Dlouhých Pozicích ...](https://news.bitcoin.com/cs/bitcoin-whiplash-btc-se-propada-pod-115k-140m-v-dlouhych-pozicich-zlikvidovano/)

[3] [BTC to BNB: Bitcoin Price in Binance Coin](https://www.coingecko.com/en/coins/bitcoin/bnb)