Bitcoin took a sharp dive on July 31, dropping roughly $3,000 to hit an intraday low around $62,369 after struggling to hold above $65,000. The sudden slump erased a significant chunk of July’s gains, cutting the monthly increase from 10% down to about 4.5%.
The sell-off came after Bitcoin briefly surged to $65,340 following the Federal Reserve's decision to keep interest rates steady. However, momentum quickly faded as a swift wave of selling pushed prices sharply lower within an hour, dragging Bitcoin to its lowest level since mid-July.
Derivatives Market Faces Large Liquidations
Traders who bet on upward moves got hit hard. Over $100 million in leveraged long positions were liquidated more than four times the $23 million wiped out the day before. Short sellers also took some losses, with nearly $21 million liquidated in the same timeframe. Altogether, roughly $360 million vanished in forced positions across crypto markets during the drop.
The plunge trimmed Bitcoin’s market cap from $1.3 trillion to $1.26 trillion, shaking confidence in the rally that had looked solid just hours earlier. Weekly losses now stand above 2%, marking a noticeable shift from the recent bullish trend. The rapid liquidation highlights how quickly sentiment can turn in crypto trading when key price levels fail to hold.
This material is for informational purposes only and does not constitute financial advice.
