Bitcoin News Today: Bitcoin Stabilizes at $118,500 While Altcoins Face $967M in Derivatives Liquidations

The cryptocurrency market experienced a pronounced divergence in early July 2025, with Bitcoin stabilizing near $118,500 while altcoins faced widespread liquidations. Data from CoinGlass showed $967 million in derivatives contracts liquidated across the market in the past 24 hours, with long positions accounting for $829 million of the losses. XRP and Dogecoin each dropped 10%, reflecting capital rotation from alternative cryptocurrencies into Bitcoin, which traded between $117,422 and $119,197 over the period [1].

Ethereum emerged as the most affected asset, with $200 million in liquidations, followed by XRP at $115 million. Bitcoin itself recorded $84 million in liquidations despite minimal price movement, underscoring its resilience compared to smaller-cap tokens. Open Interest for major altcoins surged from $26 billion to $44 billion since July began, a 69% increase for Ethereum, Solana, XRP, and Dogecoin combined. This expansion highlights growing speculative activity in the derivatives sector, though analysts caution against interpreting it as a sign of sustained bullish momentum [1].

On-chain indicators suggest Bitcoin remains in a measured accumulation phase. The Index Bitcoin Cycle Indicators (IBCI) returned to the “Distribution” zone but only reached 80% of its upper boundary, indicating that aggressive speculation has yet to take hold. Metrics like the Puell Multiple and Short-Term Holder Spent Output Profit Ratio (STH-SOPR) remain below midpoint levels, suggesting miner profitability and short-term holder selling pressures are moderate. CryptoQuant analyst Gaah noted that Bitcoin’s recent all-time highs have not triggered the “excess” conditions typically preceding corrections, though he warned of short-term risks from retail behavior and miner activity shifts [1].

The market’s fragmentation extends to technical patterns. Bitcoin’s support level at $118,300—identified by CryptoQuant’s Amr Taha—represents the realized price for holders who purchased within the last week. This level has been reinforced by new entrants maintaining positions despite volatility, signaling confidence in Bitcoin’s near-term stability. Conversely, altcoins like Dogecoin and Solana faced $56 million and $58 million in liquidations respectively, amplifying concerns about liquidity imbalances in leveraged positions [1].

The divergence between Bitcoin and altcoins mirrors historical trends where Bitcoin consolidates during risk-off periods while speculative assets face margin calls. Analysts attribute this dynamic to Bitcoin’s role as a de facto “safe haven” within crypto, particularly amid macroeconomic uncertainties such as inflationary pressures and central bank policy shifts. However, the absence of major regulatory developments during the July sell-off suggests the liquidations were driven more by technical triggers than external shocks.

Bitcoin’s ability to hold above $118,000 has become a critical focal point for traders. While some view the level as a short-term floor, others caution that prolonged consolidation could test market confidence. The broader altcoin ecosystem’s fragility—exemplified by the $967 million in liquidations—underscores the sector’s vulnerability to liquidity shocks, particularly when leveraged positions are concentrated in lower-market-cap assets.

Sources:

[1] ["Bitcoin Stabilizes at $118,500 While Altcoins Face $967 Million in Crypto Liquidations", Blockonomi, July 15, 2025](https://blockonomi.com/bitcoin-stabilizes-at-118500-while-altcoins-face-967-million-in-crypto-liquidations/)