Bitcoin News Today: Bitcoin Plunges 2.27% to $115,000 as $155M Liquidations Hit Long Positions

Bitcoin’s price plummeted to $115,000 on July 25, 2025, marking a 2.27% decline within 24 hours and triggering over $155.28 million in liquidations across leveraged markets. The collapse disproportionately affected long positions, with $139.78 million in losses recorded compared to $15.50 million for short positions. This imbalance highlights the vulnerability of bullish traders, many of whom had failed to anticipate the rapid correction following a failed attempt to reclaim the $119,000 level earlier in the session [1]. The downward spiral accelerated as fading momentum and algorithmic triggers near key resistance zones intensified selling pressure, eroding nearly $3,000 from Bitcoin’s value within hours [1].

Despite the turmoil, trading activity surged. Bitcoin’s 24-hour volume spiked to $84.97 billion—a 26% increase—driven by panic selling and liquidation events. The total market cap stabilized at $2.3 trillion, with a fully diluted value of $2.42 trillion [1]. Analysts attribute the sharp correction to overcrowded long positions and automated strategies that exacerbated the sell-off, though the broader bullish trend for Bitcoin remains intact over the long term [1]. Notably, no fundamental catalysts—such as regulatory shifts or macroeconomic events—were identified to explain the sudden dip.

Market watchers suggest stabilization could follow as liquidation flows subside. AlphaBTC, a prominent analyst, previously speculated in a July 13 article that Bitcoin might drop further near $115,000 to "grab liquidity," citing order-book imbalances at that level as a potential trigger for price consolidation. However, this projection is speculative and does not reflect actual market performance at the time of the reported drop [2]. The event underscores Bitcoin’s persistent volatility, even at elevated price levels. While the immediate decline raised concerns about risk management in leveraged trading, the market’s resilience—evidenced by the surge in volume—suggests ongoing demand amid short-term turbulence [1].

The correction also exposed structural vulnerabilities in leveraged markets, where algorithmic trading and concentrated long positions can amplify downward momentum. Analysts emphasize the importance of robust risk mitigation strategies, particularly as Bitcoin approaches psychological price levels that historically attract speculative flows [1]. Investors remain cautious, balancing optimism about Bitcoin’s long-term trajectory with awareness of its susceptibility to rapid reversals [1].

Source:

[1] Coindoo, [Bitcoin Drops to $115,000 as Liquidations Top $155 Million], https://coindoo.com/bitcoin-drops-to-115000-as-liquidations-top-155-million/

[2] Coindoo, [Bitcoin Drops to $115,000 as Liquidations Top $155 Million], https://coindoo.com/