Shock and awe as market declines lead to $700 million in trader liquidations
In the world of cryptocurrencies, the past few days have seen a significant storm of liquidation events. On July 31, a liquidation storm worth $700 million rocked the crypto markets, marking the largest such event this year.
The liquidation wave was primarily triggered by traders failing to meet margin requirements during the heightened market volatility, rather than being influenced by Metaplanet's Bitcoin acquisition plans. However, the U.S. government's decision to raise tariffs on Canada and impose sweeping tariffs on several countries did contribute to the market panic.
Ethereum (ETH) accounted for the most liquidation during the storm, with approximately $250 million in forced closures. Bitcoin (BTC) followed closely, with liquidation losses between $110 million and $131 million. The selling pressure on altcoins like Dogecoin (DOGE), XRP, and Solana (SOL) was also significant, with price drops around 6%, though their individual liquidation amounts were smaller compared to ETH and BTC.
Binance saw the highest single liquidation order amounting to $4.45 million in ETHUSDC, highlighting how concentrated some losses were. Market volatility surged, liquidating over $125 million in just one hour at one point during the correction.
In total, the liquidation events led to losses of between $500 million and $630 million across the crypto market. This significant adverse impact on price stability and trader sentiment is a reminder of the volatility inherent in the cryptocurrency market.
Despite these events, Metaplanet, a Japanese hotel company, remains optimistic about their Bitcoin acquisition plans. They aim to acquire 210,000 BTC by 2027, an increase from their current holdings of 17,132 BTC. However, it's important to note that these plans are not directly linked to the recent liquidation storm in the crypto markets.
This recent market volatility spike serves as a reminder for traders to manage their positions carefully and stay informed about global economic events that could impact the crypto markets. As always, the crypto market remains a dynamic and exciting space to watch and participate in.
[1] Coinglass Report, August 2, 2025 [2] Cointelegraph, August 2, 2025 [3] Bloomberg, August 2, 2025 [4] CoinDesk, August 2, 2025
- The liquidation storm on July 31, which was the largest this year, affected various crypto exchanges, with Binance witnessing a single liquidation order of $4.45 million in ETHUSDC.
- Ethereum (ETH) accounted for the most liquidation during the storm, with approximately $250 million in forced closures, followed closely by Bitcoin (BTC) with liquidation losses between $110 million and $131 million.
- The selling pressure on altcoins like Dogecoin (DOGE), XRP, and Solana (SOL) was also significant, with price drops around 6%, though their individual liquidation amounts were smaller compared to ETH and BTC.
- Despite the recent liquidation storm, Metaplanet, a Japanese hotel company, remains optimistic about their Bitcoin acquisition plans, aiming to increase their BTC holdings to 210,000 by 2027, from their current 17,132 BTC.
