Bitcoin Plunges: Over 230,000 Crypto Positions Liquidated in 24 Hours

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The cryptocurrency market faced another turbulent session today as Bitcoin dropped sharply below the $55,000 threshold, triggering widespread liquidations and intensifying investor concerns.

Sharp Decline Triggers Massive Liquidations

Bitcoin tumbled to $54,403.20 per coin, marking a 7.51% drop within 24 hours, according to Coinglass data. This steep decline has led to over **230,000 long positions** being liquidated across the digital asset market, with total losses exceeding **$660 million** in less than a day.

The sell-off wasn’t isolated to Bitcoin. The broader crypto market followed suit, with most top 10 cryptocurrencies falling between 10% and 20%. Ethereum led the downward trend, dropping 10.43% and briefly slipping below $2,900. Solana (SOL) also declined by **7.37%**, trading around $125 during the volatile session.

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Ripple Effects on ETFs and Crypto-Linked Stocks

The downturn sent shockwaves through traditional financial markets, particularly affecting Hong Kong-listed spot Bitcoin and Ethereum ETFs. All six major ETFs experienced significant declines:

Bitcoin-related equities also suffered steep losses:

These movements highlight the growing integration between digital assets and traditional capital markets — a trend that continues to amplify cross-market volatility.

Key Factors Behind the Bitcoin Sell-Off

Despite earlier optimism around institutional adoption and macroeconomic shifts, two major developments have recently pressured Bitcoin’s price trajectory.

1. German Government’s Ongoing Bitcoin Sales

On July 4, German authorities transferred approximately $75 million worth of BTC** to major exchanges including Coinbase, Kraken, and Bitstamp — a clear signal of impending sales. Since mid-June, Germany has offloaded over **$390 million in Bitcoin, part of a larger seizure from 2013 involving nearly 50,000 BTC.

At current prices, the remaining stash held by German authorities is valued at roughly $2.7 billion, raising fears of further supply pressure if additional coins are dumped onto exchanges. Historically, large government liquidations — such as those by the U.S. Marshals Service or after Mt. Gox’s collapse — have triggered short-term bearish momentum.

2. Mt. Gox Repayment Plan Sparks Market Anxiety

Even more concerning for investors is the announcement from the Mt. Gox bankruptcy trustee, who confirmed that BTC and BCH repayments to creditors will begin in early July 2024. The trustee currently holds around 140,000 BTC, valued at approximately $9.26 billion, along with a significant amount of Bitcoin Cash.

Once the world’s largest Bitcoin exchange, Mt. Gox collapsed in 2014 after hackers stole about 850,000 BTC — worth $450 million at the time but now worth tens of billions. Although only 141,000 BTC were recovered and placed under court supervision, the upcoming distribution raises fears that recipients may immediately sell their holdings for profit, flooding the market with supply.

While repayments are expected to be staggered over months or even years, any sign of mass selling could further destabilize an already fragile market.

"Large-scale unlocks or repayments always introduce uncertainty," said a senior analyst at a leading digital asset research firm. "Even if not all coins hit the market at once, sentiment can shift rapidly on rumors alone."

Historical Context: A Pattern of Volatility

Bitcoin’s current downturn fits a familiar cycle. After reaching an all-time high of **$73,798 per BTC in March 2025**, the price quickly corrected below $60,000. A brief rebound in June pushed it back toward $71,000, but since late June, downward pressure has intensified.

This kind of volatility is not new — Bitcoin has seen double-digit corrections in nearly every bull cycle. However, what sets this period apart is the convergence of multiple macro and micro factors: regulatory uncertainty, geopolitical tensions, and now these large-scale BTC movements from legacy events like Mt. Gox and seized assets.

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Institutional Outlook Remains Bullish

Despite the recent turmoil, many institutional players remain optimistic about Bitcoin’s long-term prospects. CCData’s H2 2025 Market Outlook Report suggests that Bitcoin has not yet reached the peak of its current cycle and could still achieve new all-time highs before year-end.

Factors supporting this view include:

"Price dips often serve as accumulation phases for whales and institutions," noted the report. "Current pressures are temporary and do not reflect underlying demand trends."

Frequently Asked Questions (FAQ)

Why did Bitcoin crash recently?

The recent decline was driven by two primary factors: ongoing Bitcoin sales by the German government and market anxiety over the Mt. Gox trustee’s plan to repay creditors with over 140,000 BTC starting in July 2024. Both events raised concerns about increased market supply.

How many people were liquidated in the crypto crash?

Over 230,000 traders had their leveraged positions liquidated within 24 hours, with total losses surpassing $660 million, according to Coinglass data.

Are Bitcoin ETFs affected by price drops?

Yes. Hong Kong-listed spot Bitcoin and Ethereum ETFs fell sharply — Ethereum-focused funds dropped about 10%, while Bitcoin ETFs declined over 6%, reflecting direct exposure to underlying asset prices.

Could Mt. Gox repayments cause further price drops?

Potentially. If recipients choose to sell their recovered Bitcoin rather than hold it, the influx of supply could weigh on prices. However, repayments are expected to be gradual, which may mitigate immediate impact.

Is this a good time to buy Bitcoin?

Market timing is inherently risky. While current conditions show short-term bearish pressure, many analysts believe Bitcoin remains in a long-term bull cycle. Investors should assess risk tolerance and consider dollar-cost averaging instead of lump-sum entries.

What are the key support levels for Bitcoin now?

Key technical support levels are around $52,500–$53,000. A break below could test $50,000, though strong buying interest is expected near that zone based on historical patterns.

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Final Thoughts: Navigating Uncertainty with Strategy

While headlines scream of crashes and mass liquidations, seasoned investors understand that volatility is intrinsic to the cryptocurrency ecosystem. Events like government asset sales or legacy debt repayments are predictable stress tests — not existential threats.

For traders and holders alike, this phase underscores the importance of risk management, portfolio diversification, and emotional discipline. Markets driven by fear often create opportunities for those prepared to act rationally.

As the dust settles from this latest sell-off, attention will shift to on-chain activity, exchange inflows/outflows, and macroeconomic indicators — all critical signals for determining whether this dip is a pause or the start of a deeper correction.

Regardless of short-term movements, one trend remains clear: institutional confidence in Bitcoin as a strategic asset class endures — and may even strengthen amid adversity.