Bitcoin News: $1 Billion Wiped Out as BTC and Altcoins Crash 2.5%-9% in Market Turmoil
The cryptocurrency market is reeling from a brutal sell-off, with Bitcoin (BTC) and major altcoins plunging amid heightened volatility. Over $1 billion in leveraged positions were liquidated as BTC dropped 2.5% and altcoins like XRP and Solana fell up to 9%. What triggered this downturn, and what does it mean for traders?
Bitcoin News: $1 Billion Liquidated in 24 Hours
The crypto market faced one of its most turbulent periods in late July 2025, with Bitcoin slipping below $114,322 and altcoins suffering even steeper losses. Data from Coinglass reveals that $925.6 million in long positions were wiped out, compared to $159.3 million in shorts. Key factors behind the sell-off include:
- Macroeconomic uncertainty (U.S.–China trade tensions, inflation fears)
- Overleveraged traders facing margin calls
- A broader market correction after recent highs
Crypto Liquidations Hit Record Levels
The liquidation wave was concentrated in BTC and ETH, with over $570 million in long positions erased. The table below highlights the worst-hit assets:
| Cryptocurrency | 24-Hour Drop | Liquidation Impact |
|---|---|---|
| Bitcoin (BTC) | 2.5% | $420M+ |
| Ethereum (ETH) | 4.4% | $210M+ |
| XRP | 5.1% | $95M+ |
| Solana (SOL) | 7.8% | $75M+ |
BTC Price Drop: Is a Rebound Coming?
Bitcoin’s decline from $123,000 to below $117,000 has left traders questioning whether this is a temporary retracement or the start of a deeper correction. Analysts suggest:
- The market may stabilize if macroeconomic pressures ease.
- Long-term holders remain unfazed, but short-term traders face high risk.
- Disciplined risk management is crucial in volatile conditions.
Altcoin Volatility: Who Suffered the Most?
While Bitcoin’s drop was significant, altcoins like Dogecoin and Solana saw declines exceeding 9%. The total crypto market cap fell 6.9% in 24 hours, erasing $3.9 trillion in value. Key takeaways:
- High-beta altcoins are more vulnerable to sharp corrections.
- Leveraged positions magnify losses during downturns.
- Market sentiment remains fragile.
Market Correction or Prolonged Downturn?
The recent sell-off underscores the crypto market’s sensitivity to external shocks. While some analysts predict a rebound, others warn of further downside if macroeconomic conditions worsen. Traders should:
- Avoid overleveraging in uncertain markets.
- Monitor global economic indicators.
- Prepare for potential volatility spikes.
Final Thought: The $1 billion liquidation event serves as a stark reminder of crypto’s inherent volatility. While opportunities remain, risk management is non-negotiable.
FAQs
Q: What caused the recent Bitcoin price drop?
A: A combination of macroeconomic uncertainty, leveraged trading liquidations, and a broader market correction contributed to the decline.
Q: How much was liquidated in the crypto market?
A: Over $1 billion, with $925.6 million from long positions and $159.3 million from shorts.
Q: Will altcoins recover faster than Bitcoin?
A: Historically, altcoins are more volatile—they may rebound faster but are also prone to deeper drops.
Q: Is this a good time to buy the dip?
A: It depends on risk tolerance. While prices are lower, volatility remains high, so cautious entry strategies are advised.
