Bitcoin News Today: Bitcoin liquidation cascade hits $646 million in 24 hours as longs dominate 76%

Bitcoin’s sharp decline to $115,300 on July 25, 2025, triggered a $646 million liquidation cascade within 24 hours, per CoinGlass data [1]. The sell-off, driven by leveraged long positions, erased nearly $500 million in bullish bets, with shorts absorbing just $154.4 million. Bitcoin and Ethereum each saw $152 million in forced closures, while Solana and XRP lost $39.2 million and $29.9 million in long exposure despite mixed price movements. Binance, Bybit, and OKX collectively accounted for 80% of liquidations, with long positions dominating 75-76% of forced exits across platforms [1].

The most intense liquidation occurred during a four-hour window, where $201.8 million in positions were closed, amplifying downward momentum. Automated trading systems and stop-loss orders exacerbated the sell-off, creating a self-reinforcing cascade. Despite the turmoil, Bitcoin stabilized above $115,000 post-liquidations, with funding rates on perpetual swaps normalizing, suggesting spot markets absorbed the supply shock.

The event underscores the fragility of leveraged trading in crypto markets, where aggressive bullish positioning—particularly in major assets—can lead to systemic corrections. Over $492 million in long liquidations highlights concentrated risk in bullish bets, with smaller-cap majors like Solana and XRP also holding significant directional exposure. The dominance of long liquidations, especially on Binance ($232.9 million), reflects a market overextended in bullish leverage [1].

Analysts note the cascading nature of forced exits, where algorithmic unwinds feed further price declines, particularly in low-liquidity environments. While Bitcoin’s stabilization post-event suggests temporary equilibrium, the incident reinforces warnings about excessive leverage. The sell-off also exposed vulnerabilities in derivative platforms, where cross-asset liquidations and interconnected exchanges amplified systemic risk.

The 24-hour period saw $646 million in total liquidations, marking one of the largest single-day forced closures in crypto history. Ethereum’s $152 million in liquidations, despite a 0.1% price increase, illustrates how leveraged longs can face losses even in sideways or slightly bullish conditions. The incident has reignited debates on risk management frameworks, particularly for leveraged products in volatile markets [1].

Source: [1] [Bitcoin liquidation cascade wipes out $646 million in 24 hours] (https://cryptoslate.com/insights/bitcoin-liquidation-cascade-wipes-out-646-million-in-24-hours/)