Bitcoin Leads $410 Million Crypto Liquidation Cascade in 24 Hours

Bitcoin News

Bitcoin (BTC) anchored a sweeping deleveraging event over the past 24 hours, as roughly $410.13 million in leveraged positions were forcibly closed across the crypto market. Our reading of the derivatives data shows long positions absorbed the heavier blow, accounting for $257.72 million, or 62.79% of the total — a sign that traders betting on further upside were caught offside. Bitcoin alone recorded $189.11 million in liquidations, the largest of any asset, followed by Ethereum at $96.55 million. The concentration in the two majors suggests the shakeout stemmed from market-wide leverage stress rather than an isolated altcoin dislocation. Despite the flush, spot prices held firm.

On the policy front, the White House confirmed it continues to evaluate the optimal structure for a strategic Bitcoin reserve. While officials stopped short of announcing an execution plan, the mere persistence of a national-level accumulation debate carries symbolic weight for market sentiment. A government framework for holding Bitcoin (BTC) would mark a structural shift in how sovereign entities treat the asset, moving it closer to the reserve-asset conversation long reserved for gold. For now, the discussion remains exploratory, with no confirmed purchase mechanism or budget disclosed. Traders are treating the review as a medium-term tailwind rather than an immediate price catalyst, given that no timeline for any acquisition has been made public.

Regulatory timelines also sharpened this week, with attention turning to the US crypto market-structure legislation that must clear the Senate by August 7. The deadline gives the bill — designed to define how digital assets are classified and supervised — a concrete legislative runway. A clearer rulebook would reduce the jurisdictional ambiguity that has long deterred institutional allocators, potentially unlocking sidelined capital. Market participants read the fixed date as a signal that formal integration is advancing from rhetoric toward statute. The near-term price impact is muted, but the framework could reshape mid-term inflow expectations if the Senate meets the deadline without material amendments to the current draft text.

On-chain data painted a divided picture of holder intent. Over a single session, 1,134 BTC moved from an anonymous wallet into Coinbase — a pattern often preceding potential selling — while 1,219 BTC flowed the other way, exiting Coinbase toward external self-custody, a signal typically tied to long-term holding. The near-symmetrical two-way traffic underscores a market split on conviction. Separately, miner Riot Platforms transferred 500 BTC to a NYDIG custody account. Although custody transfers are frequently logistical rather than sales, the market tends to scrutinise miner movements closely, interpreting them as latent supply that could reach exchanges under sustained selling pressure.

Corporate exposure to Bitcoin gained another indirect channel with news that SpaceX is set to join the Nasdaq-100. The move adds a further Bitcoin-holding company to the benchmark index, following Tesla and Strategy, both known for carrying BTC on their balance sheets. As more index constituents hold the asset, passive capital tracking the Nasdaq-100 gains embedded Bitcoin exposure without any direct crypto allocation. Analysts highlight this as evidence that Bitcoin is being absorbed into traditional capital markets through the back door of corporate treasuries rather than solely through spot products. The trend deepens the structural linkage between equity-index flows and Bitcoin's broadening ownership base.

Beneath the price action, market structure turned notably hotter. Bitcoin dominance edged up to 58.07%, rising 0.26 percentage points in a day, as capital rotated toward the asset perceived as relatively safer during volatility — a classic risk-off flow that tends to intensify whenever a bear-market scare grips leverage. Derivatives trading volume surged 104.58% from the prior day, indicating leverage had not fully cooled even after the liquidation wave. Stablecoin volume climbed 81.28%, pointing to a build-up of dry powder as participants positioned for both dip-buying and further turbulence. The combination of resurgent leverage and rising idle capital describes a market recalibrating aggressively rather than committing decisively to one direction.

COINOTAG's proprietary 42-indicator composite S/R scoring engine, reading a live spot price near $64,370, rates the $67,369 resistance at 71/100, driven by the confluence of the Fibonacci 0.382 retracement and the R2 pivot, with the nearer $65,720 cap scored 66/100 on the Swing High and BB Upper band. On the downside, our engine grades $63,749 support at 71/100 (HVN and prior-day close) and $61,957 at 62/100. Derivatives positioning shows a modest 0.0064% funding rate and a 1.50 long/short ratio (60% long) against $12.59 billion open interest — leaning bullish but crowded. With RSI at 54.82 and Fear & Greed at 24 (Extreme Fear), a reclaim of $65,720 opens $67,369; losing $61,957 invalidates the recovery thesis.