25.07.2025 08:48

A significant Bitcoin price drop triggered a massive liquidation cascade, resulting in over $646 million in forced closures across various crypto assets within a 24-hour period. This dramatic event followed a 2.1% decrease in Bitcoin's price, from $117,786 to $115,353, although intraday fluctuations were considerably more volatile, reaching a swing of approximately $4,350.

The overwhelming majority of liquidations, totaling $492.6 million (76.2%), stemmed from long positions, highlighting the market's bullish sentiment before the downturn. Short positions accounted for a considerably smaller portion, at $154.4 million. Bitcoin and Ethereum suffered almost equally, each experiencing approximately $152 million in liquidations; however, Bitcoin's liquidations skewed heavily towards long positions ($136 million versus $16.1 million in shorts). Ethereum displayed a more balanced profile, suggesting that even bearish bets on Ethereum were affected by the sudden price movement. Solana and XRP also saw substantial losses, with $39.2 million and $29.9 million in long liquidations respectively, demonstrating that even smaller-cap cryptocurrencies carried considerable directional risk.

The cryptocurrency exchanges bore the brunt of these liquidations, with Binance experiencing the most significant impact, recording $232.9 million in net liquidations – 75% of which were long positions. Bybit and OKX followed closely, with $187.5 million and $108.1 million in liquidations respectively. These three exchanges alone accounted for roughly 80% of the total forced liquidations. A particularly intense period of four hours witnessed a staggering $201.8 million in position closures, with longs overwhelmingly dominating at $184.8 million. This rapid, automated unwinding significantly amplified price movements, creating a self-feeding cascade that only subsided once collateral buffers stabilized.

Despite this substantial liquidation event, Bitcoin's price...