Bitcoin temporarily fell to $113,547 on Thursday before a slight recovery, leaving traders bewildered and triggering a cascade of liquidations across the cryptocurrency market.
Bitcoin fell 3.2% today to a daily low of $113,547, before bouncing back up to $113,820 in the afternoon. This decline has pulled its market capitalization down to $2.26 trillion, while the leading cryptocurrency is currently down 2.1% against the US dollar over the past week. The broader digital asset market has also suffered, resulting in a wave of forced liquidations across derivatives exchanges totaling $863.61 million.
BTC/USD 1-hour chart on August 1, 2025.
Of that total, $215.83 million came from long positions in bitcoin, while $255 million was related to long positions in ethereum. This wave of liquidations reflects high volatility across major trading pairs, particularly for over-leveraged positions caught off guard by the sudden downturn. While some traders are buying the dip, others are watching for further downward pressure. Despite recovering from today’s lows, uncertainty remains as traders reassess their positions amid rising macroeconomic pressures and changing investor sentiment across the entire cryptocurrency economy.
