Bitcoin News Today: Bitcoin Stabilizes at $118,500 Amid $967M Altcoin Liquidations, XRP, Dogecoin Drop 10%

Bitcoin stabilized near $118,500 in late July 2025, maintaining a narrow trading range amid a broader market selloff that triggered $967 million in crypto derivatives liquidations. The derivatives sector saw long positions bear the brunt of the losses, accounting for $829 million of the liquidations as altcoins collapsed under speculative pressure. While Bitcoin remained relatively untouched, XRP and Dogecoin both plummeted 10%, signaling a shift in capital toward the top cryptocurrency. Ethereum, Solana, and XRP led the liquidation list, with Ethereum alone absorbing $200 million in forced closures [1].

On-chain metrics revealed a mixed picture for Bitcoin. The Index Bitcoin Cycle Indicators (IBCI), analyzed by CryptoQuant, indicated the market was in the "Distribution" phase but remained 20% below the upper boundary of that zone. Key components of the index, including the Puell Multiple and Short-Term Holder Spent Output Profit Ratio (STH-SOPR), remained below midpoint levels, suggesting speculative fervor had not yet reached critical thresholds. Despite Bitcoin’s all-time high, miner profitability stayed in the "Discount" range, reinforcing the argument that the market had not yet entered an overheated phase. CryptoQuant’s Gaah warned of short-term correction risks but noted that Bitcoin’s stability and retail confidence could anchor the market [1].

The altcoin selloff was exacerbated by a surge in open interest, which ballooned from $26 billion to $44 billion since July 1. This 69% increase in futures positions across Ethereum, Solana, XRP, and Dogecoin combined highlighted speculative bets that may now be unwinding. Bitcoin’s own open interest reached $84 million in liquidations, a smaller but notable figure given its limited price movement. Analysts attributed the divergent performance to Bitcoin’s role as a de facto safe-haven asset amid macroeconomic uncertainties, while altcoins’ lower liquidity and regulatory exposure left them vulnerable to rapid corrections [1].

Amid the turbulence, Bitcoin’s $118,300 level emerged as a critical support zone. CryptoQuant’s Amr Taha noted that this price point aligned with the realized cost of recent buyers, reinforcing its psychological significance. The absence of major selling pressure from retail investors at this level suggested growing confidence in Bitcoin’s resilience, even as altcoins continued to hemorrhage value. Whale activity, however, introduced a complicating factor: large investors accumulated 310 million Dogecoin coins within 48 hours, indicating potential long-term optimism for certain altcoins despite the short-term selloff [2].

The market’s "two-tiered" structure became increasingly apparent, with Bitcoin’s performance dictating broader sentiment. While no official forecasts were provided in the data, the observed trends suggested Bitcoin could retest its $127,000 peak if macroeconomic clarity emerged. Altcoins, meanwhile, faced an uphill battle to recover, their fates tied to Bitcoin’s movements and the resolution of speculative imbalances. As the derivatives market digested these dynamics, investors remained cautious ahead of key U.S. inflation data in August, which could influence the trajectory of both Bitcoin and altcoins [2].

Sources:

[1] [title1: Bitcoin Stabilizes at $118,500 While Altcoins Face $967 Million in Crypto Liquidations] [url1: https://blockonomi.com/bitcoin-stabilizes-at-118500-while-altcoins-face-967-million-in-crypto-liquidations/]

[2] [title2: Dogecoin (DOGE) Price: Whale Wallets Accumulate 310 Million Coins in 48 Hours] [url2: https://blockonomi.com/dogecoin-doge-price-whale-wallets-accumulate-310-million-coins-in-48-hours/]