The cryptocurrency market is reeling from a massive sell-off, with Bitcoin plunging to its lowest level since July 10. Altcoins triggered a staggering $751 million in liquidations, sending shockwaves across exchanges. What does this mean for your portfolio? Let’s break down the chaos.
Bitcoin News: Market Plunge Explained
Bitcoin’s price tumbled below $115,000, marking a 7% drop from its July peak. This decline comes after a brief rally that saw BTC surge from $110,000 to $118,000 in under 24 hours. The current pullback reflects broader market instability that dominated late July trading.
Why Did Altcoins Trigger Massive Liquidations?
The crypto bloodbath saw:
- $705 million in long positions wiped out
- Binance and Bybit accounting for 66% of liquidations
- Ethereum dropping 6.4%, Solana and XRP falling over 7%
Crypto Market Sentiment Shifts to Neutral
The Fear and Greed Index flipped from ‘greed’ to ‘neutral’ as:
| Metric | Change |
|---|---|
| Active addresses | Declining |
| Exchange outflows | Dropping |
| Leverage ratio | Overextended |
What’s Next for Bitcoin Price?
Key levels to watch:
- Support: $113,500-$114,000 zone
- Critical test: $110,000 early July consolidation
- Long-term: Still 8% up since July start
While short-term sentiment has soured, Bitcoin remains well above its June range near $100,000. The current turbulence may present buying opportunities for patient investors.
FAQs
What caused the $751 million in liquidations?
Overleveraged positions in perpetual contracts collapsed as altcoins led a market-wide sell-off, triggering cascading liquidations.
How low could Bitcoin go?
If $113,500 support breaks, BTC could retest $110,000. However, the long-term structure remains bullish above $100,000.
Are altcoins leading Bitcoin’s price movement?
Evidence suggests altcoins may have led this downturn, with overleveraged positions unwinding after July’s ‘alt season’ rally.
What does the Fear and Greed Index indicate?
The shift from ‘greed’ to ‘neutral’ suggests cooling enthusiasm but not yet panic selling.
