Bitcoin News Today: Large DOGE Position Partially Liquidated as Price Drops 10% Amid Volatility and $3M Losses

A sharp decline in Dogecoin (DOGE) prices on August 3, 2025, triggered a partial liquidation of a large leveraged position, according to reports from crypto market observers. The move reflects the heightened volatility in the cryptocurrency market, particularly when leveraged positions are involved. A whale holding a position with 10x leverage saw portions of their DOGE longs liquidated during the downturn, highlighting the risks associated with high leverage in such conditions [1].

The liquidation led to losses exceeding $3 million, underscoring the amplified exposure and vulnerability faced by traders who employ high leverage in highly volatile assets like DOGE. This event also generated increased market activity, as the price drop reached as low as $0.21—approximately 10% below recent highs [1].

Despite the turbulence, the event appears to have drawn the attention of institutional investors, who are reportedly increasing their accumulation of DOGE and other cryptocurrencies. During the downturn, institutional wallets acquired over 310 million DOGE tokens, signaling confidence in the asset’s long-term potential. This strategic buying suggests that while retail traders may be vulnerable to rapid price swings, larger players view the current dip as an opportunity to build positions at lower prices [1].

The liquidation event occurred amid a broader decline in the crypto market, which saw Bitcoin (BTC) drop by 2.4% and Ethereum (ETH) fall 4.3% over the preceding 24 hours, according to market data [2]. Such broad-based weakness amplifies the risks for leveraged investors and contributes to the self-reinforcing nature of price declines. In particular, the use of high leverage—highlighted by recent warnings from exchanges—magnifies the risk of sudden liquidations, even from minor price moves [3].

The incident also underscores the ongoing challenges facing leveraged trading in the crypto space. As one financial analyst noted, even small adverse price movements can lead to forced liquidations when positions are leveraged. This dynamic is especially pronounced in highly volatile assets like DOGE, where price swings can exceed the margin requirements for leveraged investors.

While the liquidation event is a clear sign of market instability, the increased accumulation by institutional actors signals a degree of confidence in the long-term potential of DOGE. This divergence in market behavior—between leveraged retail traders and more capitalized institutional investors—highlights the complex interplay of sentiment and strategy in the crypto markets.

As the market continues to evolve, the actions of large investors and the management of leveraged positions will remain key factors in determining price stability. In the immediate term, the partial liquidation of a large DOGE position serves as a cautionary example of the risks associated with high leverage, even as it draws the attention of capital-seeking long-term buyers.

---

Source:

[1] https://en.coinotag.com/dogecoin-price-drop-leads-to-partial-liquidation-of-large-leveraged-position-institutions-increase-accumulation/

[2] https://www.facebook.com/groups/793823444334728/posts/2525939351123120/

[3] https://www.kucoin.com/news/category/bitcoin