Bitcoin News Today: Bitcoin Stabilizes at $115500 Amid 2% Drop, Altcoin Liquidations Hit $967M as Market Rotates

Bitcoin’s recent price correction has been interpreted as a strategic market rotation rather than a sign of systemic panic, according to analysis from COINOTAG and other market observers. The cryptocurrency’s 2% decline to $115,500 in mid-July 2025 was accompanied by a risk index reading of zero, signaling the absence of overheating or excessive leverage among investors [1]. This stabilization aligns with broader technical indicators, including a cooling Relative Strength Index (RSI) to 66 and steady open interest levels, which collectively suggest a healthy adjustment within a long-term bullish framework [1]. Analysts emphasized that the correction reflects disciplined portfolio rebalancing rather than speculative distress, with Bitcoin remaining firmly above its 50-day moving average—a critical support level historically associated with sustained upward momentum [1].

The correction coincided with significant volatility in the altcoin market. Derivatives platforms reported $967 million in liquidations, with Ethereum and XRP bearing the brunt of losses at $200 million and $115 million, respectively [1]. This marked a 5.4% decline in Bitcoin’s dominance over 30 days, underscoring a shift in capital flows toward alternative assets. However, Ethereum-based exchange-traded products (ETPs) attracted record inflows of $2.2 billion, driven by renewed macroeconomic tailwinds and growing interest in blockchain infrastructure for AI applications [2]. Meanwhile, XRP experienced an 8% drop during the July 24–25 trading session as derivatives liquidations accelerated [3]. The broader crypto market, valued at $3.86 trillion on July 24, saw a 1.52% decline in 24 hours, highlighting heightened sensitivity to leverage risks amid consolidation [5].

Industry commentary highlighted the summer phase as a pivotal moment for crypto markets. Matrixport analysts warned of potential liquidation risks, noting that the consolidation period could either catalyze renewed bullish momentum or deepen corrections [10]. TradingView analysts echoed this caution, emphasizing that Bitcoin’s structure remained bullish above $112,000 but required a breakout above $125,000 to confirm a sustained upward trajectory [10]. Despite short-term volatility, long-term optimism persisted. VanEck’s July ChainCheck underscored Bitcoin’s resilience amid macroeconomic tailwinds, while CoinDCX’s June forecast—predicting a price target of $122,379—remained unchallenged by mid-July’s correction [6].

Market participants observed divergent interpretations of the correction. While some viewed it as a necessary rebalancing following record inflows, others cautioned against overleveraging during periods of uncertainty [9]. The interplay between Bitcoin’s stability and altcoin volatility reflected a maturing crypto ecosystem, where capital rotation into niche assets like BNB, KAS, and PENGU gained traction [9]. This diversification contrasted with the earlier dominance of Bitcoin and Ethereum, signaling a broader maturation of the market.

The correction’s implications extend beyond price movements. The breakdown from a short-term descending triangle pattern initially raised bearish concerns, but analysts attributed the movement to a false breakout within a larger bullish framework [1]. This scenario presents an advantageous entry point for informed investors, as the correction aligns with a pattern of higher lows and higher highs. With panic selling dispelled by objective data, the current phase is positioned as a strategic window for accumulation. Maintaining vigilance on evolving technical signals will be crucial for navigating this phase effectively [1].

Sources: [1] [Bitcoin Stabilizes at $118500 While Altcoins Face $967M](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-stabilizes-118-500-altcoins-face-967m-derivatives-liquidations-2507/) [2] [VanEck Mid-July 2025 Bitcoin ChainCheck](https://www.vaneck.com/us/en/blogs/digital-assets/matthew-sigel-vaneck-mid-july-2025-bitcoin-chaincheck/) [3] [XRP Volatility Spikes With $105M in Longs Liquidated](https://sg.finance.yahoo.com/news/xrp-volatility-spikes-105m-longs-050330489.html) [5] [Dow Jones Declines, Tesla Stock Plummets Post Earnings](https://m.economictimes.com/crypto-news-today-live-24-jul-2025/liveblog/122865756.cms) [6] [When Will the Crypto Market Bull Run Begin in 2025?](https://coindcx.com/blog/crypto-deep-dives/crypto-bull-run-2025/) [9] [Markets are digesting a strong run across BTC and](https://www.facebook.com/groups/61155****835809/posts/125185****806230/) [10] [BTC / Tether USD on BSC](https://www.tradingview.com/symbols/BTCUSDT_5840B7.USD/ideas/page-18/?asset=base)