Bitcoin crash falls below 116,000, "blood washing" long positions! Traders: The reason for this round of dumping has been found.

Bitcoin (BTC) fell below $116,000 during the Asian session today (25th) amid a big dump in the overall market, with over $500 million in long positions being liquidated across the entire crypto assets market on Friday. Traders believe that this round of selling is purely a measure of leverage.

According to CoinGlass data, $585.86 million in long positions have been liquidated, with Bitcoin accounting for $140.06 million, falling 2.63% to $115,356.

(Source: CoinGlass)

Traders: Dumping is purely a leverage impulse

Following closely is Ethereum, with long positions liquidated amounting to 104.76 million USD, down 1.33% to 3,598 USD during the same period.

In the past 24 hours, the Crypto Assets market has liquidated a total of 731.93 million coins.

Nansen stated that Dogecoin is the currency with the largest loss among the top ten Crypto Assets by market capitalization, falling 7% in the past 24 hours to $0.22, with long positions losing $26 million.

Crypto trader Ash Crypto said in a post on X on Thursday: "This sell-off is purely a leverage rush."

He explained: "Many people, after seeing the significant rise in ETH, began to crave Alts, leading market makers to sell and liquidate late long positions."

The market suddenly experienced a big dump, leading to 213,729 traders being liquidated during this period, catching many traders who were recently optimistic off guard. The total evaporation of market short positions and long positions amounted to 731.93 million USD.

Crypto Assets market sentiment remains strong

On July 14, Bitcoin reached an all-time high of $123,100, and many expect this upward trend to continue.

Despite the pullback, market sentiment remains bullish, with the Crypto Assets Fear and Greed Index scoring "Greed" at 70 in Friday's update.

At the same time, several crypto assets industry professionals recently shared their predictions for the price increase in the crypto assets market. Galaxy Digital CEO Michael Novogratz stated on Thursday that he predicts the price of Ethereum will reach at least $4,000, an increase of about 9.8% from the current price.

At the same time, crypto analysts stated in the market report on Wednesday that if the Bitcoin upward trend continues, the next major target will be $136,000.

However, traders are hedging positions against the possibility of a rapid reversal in Bitcoin prices. If the Bitcoin price returns to Thursday's $119,500, it will expose approximately $3.07 billion in short positions to liquidation risk.