Crypto Chaos: Over $1 Billion in Liquidations as Bitcoin and Altcoins Tumble!

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Bitcoin, the digital rollercoaster we all know and love, took a nosedive of over 2.5%, crashing down to $114,322 on July 31, just after it had managed to pull itself out of the depths of despair.

Dow and Asian Markets Plummet in Stunning Coincidence

Just hours after the markets were graced by the U.S. Federal Reserve’s thrilling decision to *not* mess with interest rates, Bitcoin (BTC) plunged like a cat falling from a second-story window. By 7:45 p.m. EDT on July 31, the crypto king had tumbled more than 2.5%, landing at a disappointing $114,322. The drop came on the back of reports that the U.S. had raised tariffs on Canada to a mind-boggling 35%, while also slapping new tariffs on dozens of other countries. Oh joy.

This trade drama unfolded mere hours before President Donald Trump’s deadline for countries to beg for trade deals expired, throwing the markets into a tailspin. The Dow Jones Industrial Average took a dive, closing 330 points lower. Over in Asia, markets opened with a collective frown, with Taiwan’s TAIEX dropping over 162 points and the Hang Seng Index sliding down by 45 points. Not the kind of day anyone would want to brag about at a dinner party.

Altcoins, always ready to follow Bitcoin into the abyss, registered some steep losses too. Ethereum (ETH) took a 4.4% hit, falling to $3,686, while XRP briefly dipped to $2.93 before scrambling its way back to $2.99. Meanwhile, most other altcoins joined the parade of disappointment, dropping by 4% or more. This combined chaos led to the crypto market capitalization tumbling by 6.9%, settling at $3.84 trillion—because why not make a massive dent in the digital economy, right?

The past 48 hours have been a crypto disaster movie, with more than $1 billion in leveraged positions wiped off the map. Unsurprisingly, liquidated long positions were the stars of the show, accounting for the lion’s share of losses. According to Coinglass, from July 30 to August 1 (12:20 a.m. EDT), $925.6 million worth of long positions evaporated, compared to just $159.3 million in short positions. This is like watching a firework display, only to realize the fireworks are made of money.

Data from the same source shows that both BTC and ETH saw massive long liquidations, especially in the four-hour and 24-hour windows. In total, BTC liquidations in the 24-hour period amounted to $142.19 million, while ETH’s losses were a slightly bigger tragedy at $166.25 million. This just goes to show that when traders bet on the markets going up, they were really, really wrong. Who could’ve seen that coming?

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2025-08-01 12:27