Bitcoin News Today: Bitcoin plummets below $116,000 as $140 million in crypto longs liquidated

The cryptocurrency market experienced a sharp correction on July 25, 2025, as Bitcoin (BTC) fell below $116,000 for the first time since July 14, triggering over $140 million in liquidations for leveraged long positions. The price decline accelerated existing volatility, wiping out $585.86 million in long positions across the sector within 24 hours, with Ether (ETH) and Dogecoin (DOGE) also sustaining significant losses [1]. CoinGlass and Nansen data revealed that 213,729 traders were liquidated during the period, underscoring the fragility of leveraged strategies in rapidly shifting markets [2].

Bitcoin’s decline marked a critical psychological threshold, as its 2.63% drop to $115,356 disrupted a bullish trend that had pushed prices to a record $123,100 earlier in the month. The liquidation data highlighted the concentration of risk in long positions, with Ether falling 1.33% to $3,598 and Dogecoin plunging 7% to $0.22, resulting in $104.76 million and $26 million in liquidations respectively [3]. The broader sell-off reflected systemic vulnerabilities rather than isolated asset-specific factors, as 93% of liquidated positions were long-biased, according to COINOTAG analytics [1].

Despite the magnitude of liquidations, market sentiment remains cautiously optimistic. The Crypto Fear & Greed Index retained a “Greed” score of 70, suggesting investors view the correction as a temporary pullback rather than a bearish reversal. Analysts noted that such volatility is inherent to crypto markets, which often experience sharp corrections amid divergent movements in traditional asset classes. On July 24, equities hit record highs while crypto assets underperformed, signaling a risk-off shift in capital allocation [2].

The event has amplified calls for disciplined risk management. Traders are urged to employ stop-loss orders and limit leverage exposure, given the rapid amplification of losses in leveraged positions. Real-time data platforms like CoinGlass and COINOTAG are being leveraged to track open interest and anticipate market movements. However, experts caution that the current volatility could test key support levels for Bitcoin, potentially triggering further corrections if stabilization fails [3].

The liquidation figures contrast with a prior surge in July when $900 million in leveraged positions were wiped out during a price rally. This divergence underscores the unpredictable nature of crypto markets, where sudden reversals can erase gains or trigger losses within hours. The July 25 correction also highlighted the interplay between macroeconomic factors and algorithmic trading dynamics, though the exact drivers of the selloff remain unclear [2].

For now, market participants are monitoring Bitcoin’s ability to hold above $116,000. A breakdown could intensify liquidations and erode confidence in leveraged strategies. Conversely, a rebound may reaffirm the asset’s resilience, aligning with the Fear & Greed Index’s continued optimism. The episode serves as a reminder of the need for adaptive strategies in an environment where volatility remains a defining trait [3].

Source: [1] [Bitcoin Sees Over $140 Million in Liquidations Amid Crypto Market Downturn and Price Dip Below $116,000 July 25, 2025] (https://en.coinotag.com/bitcoin-sees-over-140-million-in-liquidations-amid-crypto-market-downturn-and-price-dip-below-116000/)

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

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