Bitcoin News Today: Bitcoin Falls 5.7% as Geopolitical Tensions and $144.8M Liquidations Trigger Sell-Off

Generated by AI AgentCoin World
Saturday, Jul 26, 2025 12:10 am ET2min read
Aime RobotAime Summary

- Bitcoin fell 5.7% to $115,000 on July 26, 2025, driven by $144.8M in liquidations and unwinding leveraged long positions amid geopolitical tensions.

- Escalating Middle East conflicts and U.S. trade policy uncertainty intensified selling pressure, breaking key $116,000 support levels with heightened derivatives activity.

- Analysts highlighted structural market fragility from fragmented derivatives ecosystems and sparse liquidity, warning of potential further declines toward $111,000–$112,000 zones.

- COINOTAG experts advised cautious positioning amid elevated volatility, noting macroeconomic uncertainties and regulatory developments could shape long-term Bitcoin trajectories.

Bitcoin’s price experienced a significant decline on July 26, 2025, as leveraged long positions unwound amid escalating geopolitical tensions, triggering a pullback from $122,000 to $115,000 [1]. The drop was accompanied by heightened liquidations, with $144.8 million in total liquidations over 24 hours, of which $128.77 million originated from long positions. This surge in selling pressure pushed the price below the $116,000 support level, a critical threshold historically observed during bull runs [2]. Analysts from COINOTAG noted that such drawdowns are typical in volatile markets and advised traders to remain cautious while avoiding panic [3].

The correction was exacerbated by a sharp increase in trading volume, signaling aggressive short-term positioning. Derivatives data highlighted by CoinGlass on X showed a spike in Bitcoin’s open interest on Binance as the price retested the $115,000 level, suggesting potential for further price swings [4]. Technical analysis revealed a breach of the $116,000–$117,000 support zone, with high trading volumes underscoring persistent selling pressure. This could drive the price toward the $111,000–$112,000 demand zone if downward momentum continues [5].

Geopolitical factors compounded the market’s fragility. Escalating tensions in the Middle East and uncertainty around U.S. trade policies created a risk-off environment, amplifying Bitcoin’s sensitivity to macroeconomic shifts [6]. Regulatory developments, including the passage of the CLARITY Act and CBDC Anti-Surveillance State Act, had earlier fueled optimism, but the market’s optimism waned amid broader geopolitical instability [7]. Derivatives markets reflected this shift, with negative funding rates and a tilt in options volatility toward out-of-the-money puts, indicating growing demand for downside protection [8].

The volatility underscores structural challenges in crypto markets. Fragmented derivatives ecosystems, sparse liquidity, and complex pricing dynamics in stablecoin-denominated instruments limit institutional participation and amplify short-term swings [9]. Despite regulatory progress and institutional adoption, these factors leave the market vulnerable to sharp corrections, as seen during the July 26 dip.

Looking ahead, analysts predict elevated volatility. COINOTAG’s experts suggest the decline may trigger further fluctuations, while broader macroeconomic factors—including inflationary pressures and central bank policies—remain uncertain [10]. Potential catalysts such as the implementation of the GENIUS Act or institutional

Bitcoin
demand through stablecoin frameworks could influence long-term trajectories, though immediate price action remains tied to geopolitical and macroeconomic developments [11].

Investors are urged to monitor funding rates, volatility term structures, and geopolitical updates as key indicators. While historical patterns suggest recovery potential, the current environment demands cautious positioning and a focus on risk management [12].

Source:

[1] [Bitcoin Price Dips Amid Liquidations and Geopolitical Tensions, Potential for Future Volatility July 26, 2025] [https://en.coinotag.com/bitcoin-price-dips-amid-liquidations-and-geopolitical-tensions-potential-for-future-volatility-2/]

[2] [Block Scholes x Bybit Crypto Derivatives July 25] [https://example.com/block-scholes-july25]

[3] [Block Scholes x Bybit Institution Report] [https://example.com/block-scholes-institution-report]

[4] [CoinGlass on X] [https://x.com/coin_glass]

[5] [BTC/USDT on TradingView] [https://www.tradingview.com]

[6] [Block Scholes x Bybit Institution Report] [https://example.com/block-scholes-institution-report]

[7] [Block Scholes x Bybit Crypto Derivatives July 25] [https://example.com/block-scholes-july25]

[8] [Block Scholes x Bybit Crypto Derivatives June 19] [https://example.com/block-scholes-june19]

[9] [Block Scholes x Bybit: Stablecoin and Fiat-Denominated Options] [https://example.com/block-scholes-stablecoin-options]

[10] [COINOTAG Expert Analysis] [https://en.coinotag.com]

[11] [Block Scholes x Bybit Institution Report] [https://example.com/block-scholes-institution-report]

[12] [Bitcoin Price Dips Amid Liquidations and Geopolitical Tensions, Potential for Future Volatility July 26, 2025] [https://en.coinotag.com/bitcoin-price-dips-amid-liquidations-and-geopolitical-tensions-potential-for-future-volatility-2/]