Bitcoin News Today: Bitcoin Plunge Under $115,000 Triggers $700M in Long Liquidations

Bitcoin’s sharp decline below the $115,000 support level in late July and early August 2025 triggered a massive sell-off in the derivatives market, wiping out over $700 million in long positions. The cryptocurrency derivatives market experienced significant liquidations as both retail and institutional traders faced margin calls. The largest single-crypto loss came from Ethereum, with $226 million in long positions liquidated [2]. The price movement was attributed to a combination of rising geopolitical tensions and disappointing economic signals from the U.S. Federal Reserve [3].

The drop was further amplified by the behavior of Short-Term Holders (STHs), who reportedly sent 21,400 Bitcoin to exchanges at a loss within a 24-hour period [1]. This is a classic sign of retail capitulation, where emotional reactions to falling prices trigger panic-driven exits. In contrast, institutional players showed a different trend, as on-chain data revealed shrinking Bitcoin supplies at Over-The-Counter (OTC) desks, suggesting large investors were buying during the downturn [1].

Bitcoin’s price fell to a local low of approximately $112,700 after breaking below a critical consolidation range that had held for weeks [1]. Analysts were closely watching whether Bitcoin could retest the $115,000 level to regain bullish momentum or if the next target would be the $110,000 zone. The broader market also looked for signs of institutional demand or fresh capital inflows to stabilize the price and absorb the ongoing retail-driven sell-off.

In tandem with Bitcoin’s decline, altcoins were heavily affected. Over $700 million in crypto long positions were liquidated within a 24-hour period, with altcoins accounting for a significant portion of the losses [4]. The drop in Bitcoin’s price also triggered a chain reaction across the market, influencing the broader financial landscape, including U.S. stocks, which saw a $1.1 trillion loss in value during one session [5].

The liquidation event highlighted the growing interconnectedness of traditional and digital asset markets. As Bitcoin and altcoins continue to play a larger role in global finance, their volatility has a direct impact on investor sentiment and broader market stability. Analysts remain cautious about the short-term outlook but note that long-term institutional accumulation may provide a foundation for recovery [1].

Source: [1] Bitrue (https://www.bitrue.com/blog/bitcoin-plunge-under-115k-trump-fed-crypto-volatility)

[2] AInvest (https://www.ainvest.com/news/ethereum-news-today-major-eth-position-liquidated-226m-crypto-market-slide-2508/)

[3] CryptoRank (https://cryptorank.io/news/feed/bff6e-bitcoin-breakdown-below-114k-fed-disappointment)

[4] Mitrade (https://www.mitrade.com/insights/news/live-news/article-8-1006466-20250802)

[5] Mitrade (https://www.mitrade.com/insights/news/live-news/article-3-1006261-20250802)