Bitcoin News Today: Bitcoin Falls Below $116,000 Triggering $140M Liquidations as Altcoins Plunge Amid ETF Delays and Macro Uncertainty

The cryptocurrency market experienced a sharp correction on July 25, 2025, with Bitcoin (BTC) dropping below $116,000 and triggering over $140 million in liquidations as part of a broader $585.86 million collapse in long positions within 24 hours [1]. The price decline, which erased 2.63% of Bitcoin’s value, accelerated the liquidation of 213,729 trader accounts, as reported by CoinGlass and Nansen. Altcoins also suffered, with Ether (ETH) falling 1.33% to $3,598 and Dogecoin (DOGE) plummeting 7% to $0.22, wiping out $104.76 million and $26 million in long positions, respectively. The sell-off followed Bitcoin’s July 14 record high of $123,100 and highlighted the fragility of leveraged positions in a volatile market [1].

The liquidations were driven by a combination of macroeconomic uncertainty and regulatory stagnation, including delays in U.S. spot Bitcoin ETF applications [2]. Despite the turmoil, the Crypto Fear & Greed Index remained at 70, signaling persistent bullish sentiment among investors who view the dip as a temporary setback rather than a trend reversal [1]. Analysts emphasized that such corrections are typical in crypto markets, offering potential buying opportunities for long-term holders. However, the event underscored the risks of overexposure to leveraged trading, with forced margin calls disproportionately impacting aggressive long positions.

Traders and institutional players are now monitoring Bitcoin’s ability to stabilize above $116,000, a critical support level. A sustained break below this threshold could trigger further liquidations and test the $113,000 psychological barrier. Conversely, a rebound above $118,000 might indicate short-term recovery, though institutional participation remains muted compared to earlier in the year [2]. Market observers note that diverging investor priorities between equities and crypto have persisted since the previous quarter, with crypto assets remaining sensitive to macroeconomic shifts and regulatory news.

The episode has reignited discussions about risk management in crypto trading. Experts recommend using stop-loss orders, limiting leverage exposure, and leveraging real-time data platforms like COINOTAG and CoinGlass to anticipate market movements. The liquidation of over 213,000 accounts within a single day serves as a stark reminder of the sector’s volatility, particularly for retail traders. Institutional resilience, however, remains uncertain, with the market’s ability to absorb shocks dependent on liquidity and regulatory clarity [1].

While the immediate outlook remains uncertain, the broader market’s resilience—reflected in sustained bullish sentiment—suggests that investors continue to view crypto as a long-term asset class. The challenge for traders lies in balancing optimism with caution, as sudden corrections test both technical strategies and risk tolerance. The recent downturn highlights the need for disciplined approaches, emphasizing adaptability in a landscape defined by rapid, unpredictable swings.

Source: [1] [Bitcoin, Ethereum, XRP, Dogecoin Slide Despite Equities Rally] [https://www.moomoo.com/news/post/55839506/bitcoin-ethereum-xrp-dogecoin-slide-despite-equities-rally]

[2] [The Moon Show News and Blogs: Get Daily Crypto Insights] [https://themoonshow.com/blog/]