On July 23, 2025, the cryptocurrency market saw over $669 million in net liquidations, with the altcoin market contributing the majority of the $563 million in long liquidations within the past 24 hours.
Coinglass’s market aggregate data revealed that ETH and XRP trading pairs experienced net liquidations of approximately $126 million and $69 million, respectively. Conversely, Bitcoin (BTC) saw a net liquidation of around $54 million.
Major Reasons for Crypto’s Decline Today
The 2025 altcoin bull market officially began when the price of Ethereum surpassed Bitcoin, resulting in a reversal of BTC dominance. The increasing buzz around altseason 2025 attracted more FOMO traders, leading to overheated futures.
Analysis from CryptoQuant indicated that an overheated futures market combined with weak prices often leads to a distribution phase. Santiment’s market data analysis showed that social volume and dominance for altseason 2025 reached yearly highs as the price of Ether approached $4k.
Typically, a rise in the social dominance of ATH precedes a market correction.
The significant liquidation of long traders has sparked panic selling, increasing the likelihood of a long squeeze.
What Comes Next?
The crypto market has gained bullish momentum thanks to clear regulatory frameworks in the United States and renewed interest from institutional investors. The expanding global money supply will further fuel the crypto bull market in the upcoming months.
Consequently, the broader crypto market is expected to undergo a brief period of consolidation before a sharp rally before the end of 2025. The overall bullish sentiment is reinforced by BTC’s entry into price discovery.
