On July 23, 2025, the cryptocurrency market experienced significant turbulence, with net liquidations surpassing $669 million. The bulk of this activity was rooted in the altcoin sector, which accounted for an overwhelming $563 million in long liquidations during the preceding 24 hours.
According to comprehensive market data from Coinglass, the Ethereum (ETH) and XRP trading pairs saw net liquidations close to $126 million and $69 million, respectively. Meanwhile, Bitcoin (BTC) recorded a comparatively lower net liquidation of approximately $54 million.
Major Reasons Why Crypto Dropped Today
The altcoin bull market of 2025 gained momentum after Ethereum’s price surpassed that of Bitcoin, triggering a noticeable reversal in BTC dominance. This surge of interest in altcoin season attracted a large influx of FOMO (fear-of-missing-out) traders, subsequently leading to an overheated futures market.
Market analysis from CryptoQuant indicates that a highly active futures market amid declining prices often signifies a distribution phase. Furthermore, data from Santiment reveals that social engagement and dominance related to Altseason 2025 reached yearly highs as the price of Ether approached $4,000.
Historically, spikes in social dominance during all-time high (ATH) periods often precede market corrections.
The intense liquidation of long positions has sparked panic selling, further increasing the likelihood of a long squeeze in the market.
What Next?
Despite recent setbacks, the crypto market maintains a bullish outlook due to evolving regulatory frameworks in the United States and heightened interest from institutional investors. Additionally, a growing global money supply is expected to invigorate the crypto bull market in the upcoming months.
Consequently, the broader crypto landscape is anticipated to enter a short-term consolidation phase before embarking on a potential parabolic rally later in 2025. This macro bullish sentiment is underscored by Bitcoin’s ongoing journey into price discovery.
