Bitcoin News Today: Bitcoin Plummets 2.27% Below $116,000 as $155M Liquidated in Leveraged Bets

Bitcoin’s price plummeted below $116,000 on July 23, 2025, marking a critical breakdown that triggered widespread liquidations and shifted market dynamics. The 2.27% decline over 24 hours—nearly $3,000 in value—highlighted fragility in the crypto ecosystem even at elevated price levels. As the asset tested the $113,000 psychological barrier, more than $155 million in leveraged positions were liquidated, with $139.78 million attributed to long positions [2]. This selloff, driven by algorithmic trading and overcrowded bullish bets, exposed systemic vulnerabilities, particularly among leveraged traders.

The drop accelerated as Bitcoin failed to breach the $119,000 resistance level, prompting automated stop-loss orders and reinforcing bearish momentum. Despite the sell-off, 24-hour trading volume surged by 26% to $84.97 billion, while the market cap dipped to $2.3 trillion [2]. Analysts attribute the move to technical factors rather than fundamental weaknesses, underscoring the role of overexposure in amplifying volatility. However, the correction has sparked renewed scrutiny over risk management strategies, with investors recalibrating positions across the crypto space.

The broader market followed suit as Bitcoin’s dominance intensified. Ethereum’s validator exit queue reached 644,330 ETH ($2.34 billion), its longest wait time in 18 months, contributing to a 6% decline in its price [5]. Altcoins faced sharper declines, with XRP and Dogecoin falling 17% and 18.5%, respectively. These movements reflect coordinated deleveraging rather than isolated retail panic, signaling a broader reassessment of risk appetite [5].

Technical indicators point to further downside potential. A breakdown below the $112,000 level could extend losses toward $105,000, according to a July 3 analysis [3]. Meanwhile, a Mitrade analyst warned on July 24 that Bitcoin’s failure to establish a new all-time high could trigger a 50% correction, eroding over half its value [4]. Such forecasts underscore the fragility of current momentum, especially as macroeconomic pressures and regulatory uncertainties persist.

The correction has also shifted investor focus toward early-stage projects with lower exposure to crowded trades. While the original article highlighted MAGACOIN FINANCE as a potential opportunity, such promotions have been omitted in this summary. Instead, the focus remains on how the selloff reflects broader market dynamics. Paul Howard of Wincent noted that volatility has stabilized near 40, suggesting a consolidation phase between $110,000 and $120,000 could precede a significant breakout [6].

For investors, the immediate priority is Bitcoin’s ability to reclaim key support levels. A sustained rebound above $120,000 could restore bullish sentiment, but a failure to hold above $116,000 may invite further algorithmic selling and risk-off flows [6]. The correction also underscores the importance of risk management, particularly for altcoin investors, as meme tokens and speculative assets face disproportionate downside exposure [5].

The selloff is part of a broader "perfect storm" of selling pressure, driven by rising validator unstaking activity, institutional portfolio adjustments, and geopolitical tensions [5]. While bullish forecasts from institutions like Standard Chartered ($200,000 for Bitcoin by year-end 2025) remain in place, the path to those targets appears uncertain. The current correction, rooted in technical breakdowns and institutional profit-taking, may foreshadow deeper volatility if fundamental catalysts—such as regulatory clarity or macroeconomic stability—fail to materialize.

Source:

[1] [Bitcoin Plummets Below $116000 Amid Macroeconomic Pressures](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-plummets-116-000-macroeconomic-pressures-regulatory-concerns-2507/)

[2] [Bitcoin Falls Below $116000 Triggering $140M Liquidations](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-falls-116-000-triggering-140m-liquidations-altcoins-plunge-etf-delays-macro-uncertainty-2507/)

[3] [Bitcoin Crashes Below Critical Level – What Does This Mean for Investors?](https://coindoo.com/bitcoin-crashes-below-critical-level-what-does-this-mean-for-investors/)

[4] [Analyst Sounds Alarm For 50% Crash If Bitcoin Doesn’t...](https://www.mitrade.com/insights/news/live-news/article-3-982337-20250724)

[5] [Why Is Crypto Going Down? XRP, Dogecoin, Ethereum...](https://finance.yahoo.com/news/bitcoin-outlook-why-price-surged-070645652.html)

[6] [Paul Howard, Wincent](https://www.finance-magnates.com)