The crypto market is reeling as Bitcoin plunges to its lowest level since July, with altcoins driving a massive $751 million in liquidations. What’s behind this sharp downturn, and what’s next for BTC and altcoins?
Bitcoin News: Market Sell-Off Wipes Out $751M in Long Positions
Bitcoin dropped below $115,000, marking a 7% decline from its July peak of $123,000. This pullback follows a brief rally earlier in July, where BTC surged from $110,000 to $118,000 in under 24 hours. The recent downturn reflects broader market instability, with traders attributing the stall to profit-taking and cautious positioning ahead of the FOMC’s inflation guidance.
Altcoins Amplify the Crypto Market Crash
Ethereum, Solana, and XRP each fell over 6%, mirroring Bitcoin’s losses. The derivatives market saw over $680 million in long liquidations, with Binance and Bybit accounting for most of the wipeouts. Key factors behind the crash:
- Over-leveraged positions in perpetual contracts
- Profit-taking after July’s ‘alt season’ rally
- Declining active addresses and exchange outflows
Bitcoin Price Analysis: Key Levels to Watch
BTC faces critical support at $113,500–$114,000. A break below could retest early July’s consolidation near $110,000. Despite the sell-off, Bitcoin remains 8% up since July, with long-term bullish structure intact.
What’s Next for the Crypto Market?
The fear and greed index shifted to “neutral” after recent “greed,” signaling changing sentiment. Traders should monitor:
- FOMC policy updates
- On-chain metrics like exchange flows
- Leverage levels in derivatives markets
FAQs
Why did Bitcoin drop to a July low?
Profit-taking, over-leveraged positions, and cautious trading ahead of FOMC guidance contributed to the decline.
How much was liquidated in the crypto market?
Over $751 million in long positions were wiped out, with altcoins driving most of the liquidations.
Will Bitcoin recover soon?
While short-term sentiment is bearish, BTC remains above key support levels, suggesting potential stabilization.
Which altcoins were hit hardest?
Ethereum, Solana, and XRP each fell over 6%, amplifying Bitcoin’s downturn.
