Bitcoin News Today: Bitcoin Stabilizes at $119,580 After 5% Drop, $1.1B Liquidations Triggered as Altcoin Open Interest Surges 70% to $44B

Bitcoin's recent price action has highlighted a critical juncture in the crypto market, as the asset tested key support levels while leverage metrics and open interest dynamics pointed to shifting investor sentiment. After a sharp 5% intraweek decline in early July, Bitcoin (BTC) stabilized near $114,800, rebounding to close the week at $119,580. The pullback triggered over $1.1 billion in liquidations across major exchanges on July 23-24, underscoring the fragility of speculative positions amid BTC’s previous all-time high run. While the price correction was relatively shallow, it exposed the depth of leverage in the market, with leveraged traders facing rapid deleveraging as volatility intensified [1].

The market’s structural resilience was evident in Bitcoin’s ability to hold its short-term lows, supported by steady ETF demand and a lack of significant macroeconomic shocks. However, the narrative has shifted to altcoins, where open interest dominance has surged. Ethereum’s open interest share climbed from 17% to 26%, while Bitcoin’s dominance fell to 41% from 51% in April. This shift reflects a broader rotation of speculative capital into alternative assets, driven by evolving narratives and listing activity. The combined open interest for major altcoins—ETH, SOL, XRP, and DOGE—jumped from $26 billion to $44 billion in four weeks, signaling a resurgence in risk-taking among traders [2].

The growing concentration of leverage in altcoins has amplified market risks, particularly in scenarios where macroeconomic headlines turn negative or price momentum stalls. Analysts caution that the crypto complex remains vulnerable to cascading liquidations, as speculative positioning becomes increasingly concentrated in non-Bitcoin assets. This dynamic is compounded by the U.S. economy’s mixed signals: while durable goods orders fell 9.3% in June and core capital goods dropped 0.7%, Q2 GDP forecasts of 2.4% rely heavily on temporary inventory adjustments rather than sustainable demand. Meanwhile, jobless claims declined to 217,000, the lowest in three months, but continuing claims reached 1.955 million, indicating persistent re-employment challenges [3].

Institutional activity has also reshaped the crypto landscape, with firms like Fidelity, BlackRock, and BBDelta expanding their crypto allocations in July 2025. This trend aligns with a broader shift toward Ethereum as a strategic treasury asset, exemplified by BitMine Immersion’s 566,000 ETH holdings and the impending Ether Machine IPO, which will deploy 400,000+ ETH in yield-generating infrastructure. These moves suggest growing institutional confidence in altcoins, despite lingering concerns over valuation sustainability and revenue shortfalls for companies like Trump Media, which has allocated $2 billion to Bitcoin [4].

The interplay between Bitcoin’s structural strength and altcoin-driven leverage creates a volatile equilibrium. While BTC’s ability to defend support levels remains a positive signal, the market’s dependence on speculative inflows into alternative assets raises questions about long-term stability. Traders are now monitoring whether the current balance between institutional allocations and retail leverage can provide a floor for further downside or if macroeconomic headwinds will force a reevaluation of risk exposure.

Sources:

[1] [Growing Institutional Interest] https://www.tradingview.com/symbols/BTCSOL_3JB8CL.USD/ideas/page-18/

[2] [Big Trump Candle / Wrapped SOL on Solana] https://www.tradingview.com/symbols/BTCSOL_E7A8MP.USD/ideas/page-18/

[3] Bitfinex Alpha | BTC Finds Local Low but Leverage Increasing - Bitfinex blog https://blog.bitfinex.com/bitfinex-alpha/bitfinex-alpha-btc-finds-local-low-but-leverage-increasing/

[4] Bitfinex Alpha | BTC Finds Local Low but Leverage Increasing - Bitfinex blog https://blog.bitfinex.com/bitfinex-alpha/bitfinex-alpha-btc-finds-local-low-but-leverage-increasing/