Ethereum News Today: Ethereum Drops 2% XRP Slumps 10% as Altcoin Pullback Triggers 976M Liquidations

Generated by AI AgentCoin World
Thursday, Jul 24, 2025 5:35 am ET1min read
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Aime RobotAime Summary

- Major altcoins like Ethereum and XRP fell sharply, triggering a $976M liquidation wave affecting 316K traders amid thin liquidity and unwinding leveraged long positions.

- Bitcoin rose 0.26% while altcoin market cap dropped below $1.5T, with the Altcoin Index hitting 34—its lowest level in weeks.

- Analysts cited fragile leverage and volatile order books as key drivers, though 70% of top altcoin traders still hold long positions amid lingering optimism.

- Ethereum and XRP led losses with $200M and $115M in liquidations, while a $2.96M BTC/USDC long position on Binance marked the largest single event.

Major altcoins, including

Ethereum
(ETH) and
XRP
, have reversed recent gains amid a sharp market pullback, triggering a $976 million liquidation wave that impacted over 316,000 traders [1]. The correction follows a week of strong upward momentum, with top cryptocurrencies facing resistance as leveraged long positions unwound. Ethereum fell 2%, while XRP slumped 10%, leading losses among the top 10 altcoins by market capitalization.
BNB
,
Solana
,
Cardano
,
Dogecoin
, and
Tron
each recorded declines exceeding 4%. In contrast,
Bitcoin
(BTC) edged higher by 0.26%, and stablecoins like
USDT
and
USDC
remained resilient [1].

Vincent Liu, Chief Investment Officer at Kronos Research, attributed the selloff to thin liquidity and volatile order books, noting that leveraged positions exacerbated downside pressure [1]. CoinMarketCap data revealed the altcoin market capitalization dipped below $1.5 trillion for the first time in a week, while the Altcoin Index hit 34, its lowest level in weeks [1]. Despite the decline, 70% of traders in top 10 altcoin markets maintain long positions, signaling lingering optimism about a potential rebound, according to Coinalyze [1].

The liquidation wave was most severe for Ethereum and XRP, with losses of $200 million and $115 million respectively. Other altcoins collectively saw $177 million in liquidated positions, compared to $84 million in Bitcoin-related losses [1]. Long traders accounted for $840 million of the total liquidations, while short positions lost $135 million. A $2.96 million long position on the BTC/USDC pair on Binance represented the largest single liquidation event [1].

Valentin Fournier, Lead Research Analyst at BRN, highlighted that corporate demand and reduced FTX repayment burdens remain bullish factors for the market [1]. However, the sharp correction underscores the fragility of leveraged positions in a landscape defined by shallow liquidity. The Altcoin Index’s drop to 34 reflects broader caution, though traders continue to hold significant long exposure.

Sources: [1] [title] [https://cryptoslate.com/ethereum-and-xrp-lead-976-million-liquidation-wave-as-altcoin-rally-pulls-back/]