Bitcoin News Today: Bitcoin Slips 6.3% Triggering $300 Million in Liquidations

Bitcoin’s sharp price correction following a brief all-time high of over $123,000 triggered widespread liquidations across the crypto market, with over $300 million in positions wiped out as traders closed profitable longs [1]. The move, though significant, was largely attributed to profit-taking rather than a fundamental bearish shift, according to derivatives data and on-chain analytics [2]. The decline saw Bitcoin dip to $115,192 at the time of reporting, down from a peak of $122,882 just days earlier [1].

The liquidation wave, while large, was not an isolated event. Over the past week, on-chain reports indicated that $1.89 billion in long positions had been liquidated, underscoring the fragility of investor sentiment at record highs [5]. The rapid collapse of leveraged longs, particularly on centralized exchanges, highlighted the market’s sensitivity to sudden price swings [4]. With a significant portion of open interest concentrated in long positions, any further pullback could trigger a self-reinforcing sell-off.

Analysts noted that the market’s defensive posture stemmed from a combination of geopolitical uncertainty and key upcoming macroeconomic events. The ongoing Russia-Ukraine conflict and the lack of progress in recent peace talks contributed to heightened volatility [1]. Meanwhile, the upcoming speech by Federal Reserve Chairman Jerome Powell on Friday is seen as a pivotal moment for the crypto market [2]. Powell’s stance on interest rates will be critical in determining the trajectory of the bull market over the next three months [2].

Long-term bullish signals are still in place. The recent appointment of Stephen Miran, a nominee of Donald Trump, to the Federal Reserve’s governing board has shifted expectations toward an earlier-than-anticipated rate cut, with J.P. Morgan predicting a 25 basis-point cut in September [2]. This aligns with broader market sentiment, with the CME FedWatch tool showing an 83.4% probability of a similar move [2]. A rate cut would make holding cash less attractive, potentially redirecting capital into risk assets like Bitcoin.

On-chain data also points to strong dip-buying activity, with a bid-skewed order book at 10% depth suggesting renewed investor appetite [2]. The last time this metric signaled a dip-buying event, Bitcoin surged nearly 12% in 11 days and hit a record high of $124,545 [2]. These signals, combined with supportive macroeconomic indicators, reinforce the market’s overall bullish outlook.

However, the path forward is not without risks. If Powell signals a prolonged period of high interest rates, it could trigger another wave of selling and potentially a massive liquidation event. Traders are advised to monitor Bitcoin’s performance around key support levels, particularly $113,000 and $117,000 [1]. A failure to hold above $113,000 could lead to further instability and force a broader correction in risk assets.

As the market digests these factors, the focus will remain on Bitcoin’s ability to stabilize and reclaim key resistance levels. A retest of $117,000 could signal a continuation of the bullish trend, but without a clear breakout, the path of least resistance may shift downward, testing the resilience of long-term holders and the broader market structure [1].

Sources:

[1] Bitcoin Price Alert: Liquidation Risk Surges as $113,000 and $117,000 Levels Approach (https://en.coinotag.com/breakingnews/bitcoin-price-alert-liquidation-risk-surges-as-113000-and-117000-levels-approach/)

[2] Bitcoin Slip Triggers $300 Million in Liquidations—What’s Next? (https://decrypt.co/335593/bitcoins-slip-300-million-liquidations-whats-next)

[3] Lagrange Price Jumps 24% as Breakout Signals Bullish News (https://m.fastbull.com/news-detail/lagrange-price-jumps-24-as-breakout-signals-bullish-news_6100_0_2025_3_8057_3/6100_ADA-USDT)

[4] Qubic Dogecoin Attack Sparks Concerns After Monero (https://coinfomania.com/qubic-dogecoin-attack/)

[5] Weekly Forecast: Bitcoin Retreats from Record High (https://tradersunion.com/news/cryptocurrency-news/show/439582-weekly-forecast-bitcoin-retreats-from-record-high/)