Bitcoin News Today: Crypto Market Loses $967M in 24 Hours as Altcoins Plunge 10% on Leverage-Driven Sell-Off

A significant correction swept through the cryptocurrency market on July 24, 2025, as nearly $967 million in leveraged derivative positions were liquidated within 24 hours, predominantly long positions [1]. While Bitcoin (BTC) held steady around $118,000, altcoins like Ethereum (ETH), XRP, and Dogecoin (DOGE) faced sharp declines of over 10%, triggering a wave of panic across derivatives platforms [1]. The sell-off was driven by excessive leverage in altcoin markets, where combined open interest in derivatives for ETH, XRP, and Solana (SOL) surged from $26 billion to $44 billion since early July [1]. This volatility highlighted the fragility of speculative bets, with $200 million in ETH liquidations marking the hardest-hit asset [1].

The imbalance between Bitcoin’s stability and altcoin fragility intensified as traders unwound overexposed positions. Ethereum, XRP, and Solana each lost tens of millions in open interest, while Bitcoin’s liquidations ($84 million) paled in comparison despite similar price movements [1]. Analysts attributed the purge to a "disconnect between speculative sentiment and market reality," with leveraged traders forced to exit as profit-taking and corrections collided [1]. Galaxy Digital’s $9.5 billion BTC transfers further exacerbated fears, though Bitcoin itself remained resilient amid the turmoil [2].

The liquidations underscored a broader trend of portfolio rebalancing toward Bitcoin as a safer haven. While altcoins like Flare, Aptos, and PUMP plummeted, Bitcoin’s dominance in derivatives markets grew, reflecting its role as a stabilizing force during systemic stress [5]. This divergence aligns with historical patterns where Bitcoin’s low volatility contrasts with altcoins’ higher risk profiles. The purge also coincided with a $252 billion expansion in stablecoin markets, driven by USDT, USDC, and PYUSD, as investors shifted toward less volatile assets [3].

Regulatory and macroeconomic pressures added complexity to the selloff. Recent congressional efforts to integrate crypto into traditional financial frameworks, such as Treasury bills, emphasized the sector’s structural vulnerabilities [6]. Meanwhile, institutional adoption of Bitcoin ETFs continued, but altcoins remained exposed to liquidity shocks, exemplified by $810 million in Ethereum liquidations [1]. Analysts warned that without renewed risk-on sentiment, the market may face prolonged consolidation.

The event marked a potential end to a speculative altcoin cycle, with Glassnode noting that the "overheated" derivatives market had reached a critical inflection point [1]. Traders are now closely monitoring whether Bitcoin’s stability can sustain itself against ongoing altcoin weakness. For now, the narrative of a "Bitcoin bull market amid altcoin bearishness" dominates, with key players like Galaxy Digital and regulatory bodies shaping the next phase of the crypto cycle [6].

Sources: [1] [Bitcoin Flat While Ethereum, XRP Lead Over $950 Million Crypto Liquidation Wave](https://stocktwits.com/news-articles/markets/equity/bitcoin-flat-while-ethereum-xrp-lead-950-million-crypto-liquidation-wave/ch8yMZyR5H5)

[2] [OnChain Battles Price Today - Live OCB to USD Chart & ...](https://www.fxempire.com/crypto/onchain-battles)

[3] [Stablecoin $2 trillion forecast is 'optimistic,' JP Morgan says](https://m.economictimes.com/markets/cryptocurrency/crypto-news/stablecoin-2-trillion-forecast-is-optimistic-jp-morgan-says/articleshow/122870314.cms)

[5] [Crypto wrap: BTC steady but PUMP, Flare, and Aptos ...](https://invezz.com/news/2025/07/24/crypto-wrap-btc-steady-but-pump-flare-and-aptos-among-big-altcoin-losers/)

[6] [Congress Just Injected Crypto Into the Most Stable Part of ...](https://www.reddit.com/r/CryptoCurrency/comments/1m81jjl/congress_just_injected_crypto_into_the_most/)