Over 100,000 Crypto Traders Liquidated in 24 Hours Amid Market Turmoil

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The cryptocurrency market experienced extreme volatility in the past 24 hours, triggering a wave of liquidations and reigniting debates about market sentiment, macroeconomic influences, and the growing intersection between digital assets and U.S. politics. Bitcoin plunged by over $2,600 before rebounding more than $3,000 from its lows. Major altcoins—including Ethereum, BNB, Solana, Dogecoin, and XRP—also saw sharp swings, contributing to a chaotic trading environment.

According to data from CoinGlass, more than 102,200 traders were liquidated within a single day, with total liquidation volume reaching $294 million. Approximately 80% of those liquidations were long positions, highlighting the risks of leveraged trading during sudden market reversals.

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Bitcoin’s Wild Ride: From $65K to $70K and Back

Bitcoin began the week trading around $64,900 before dropping sharply to a low of $62,300—a decline of nearly $2,600 in a matter of hours. However, it quickly recovered, climbing back above $65,500, marking a price swing of over $3,000 in less than 24 hours.

This turbulence followed a broader trend over the past two weeks, where Bitcoin surged from $59,000 to as high as $70,000 before retracing. Analysts have linked this rally to what's now widely referred to as the "Trump trade"—a phenomenon where Bitcoin’s price movement appears increasingly correlated with former President Donald Trump’s odds of winning the 2024 U.S. presidential election.

Trump has emerged as one of the most vocal political supporters of cryptocurrency. At the 2024 Bitcoin Conference, he pledged that if re-elected, he would add Bitcoin to U.S. strategic reserves and position America as the "crypto capital of the world." He also predicted that Bitcoin’s market cap could surpass that of gold.

“Bitcoin is not just an investment—it’s a movement toward financial sovereignty,” said a senior analyst at Onramp Capital.

However, recent shifts in the political landscape may be cooling this momentum. After President Joe Biden stepped down and Vice President Kamala Harris secured the Democratic nomination, Trump’s perceived chances of victory dipped slightly in prediction markets. This coincided with a pullback in Bitcoin’s price.

Mark Connors, Global Macro Strategist at Onramp, noted: “We’re seeing Bitcoin’s price act as a proxy for Trump’s electoral odds. In the months leading up to November’s election, expect tighter correlation between polling data and crypto valuations.”

Why Did the Market Panic?

Several factors contributed to the recent downturn:

Kyle Doane, Head of Trading at Arca, commented: “A portion of Bitcoin’s recent weakness can be attributed to shifting political dynamics. The ‘Trump trade’ was strong—but markets are forward-looking.”

MicroStrategy Stands Firm: Buys 12,222 BTC in Q2

Amid the chaos, MicroStrategy, the world’s largest publicly traded Bitcoin holder, doubled down on its bullish stance. In its Q2 earnings report released Thursday, the company revealed it purchased 12,222 BTC for $805 million at an average price of **$65,900 per coin**.

As of July 31, 2024, MicroStrategy holds 226,500 BTC, valued at approximately $14.6 billion** based on current prices. The company’s average purchase price stands at just **$36,821 per BTC, giving it substantial unrealized gains despite recent volatility.

However, the firm reported a net loss of **$102.6 million** for the quarter due to digital asset impairment charges totaling $180 million. Its software division generated $111.4 million in revenue—down 7.4% year-over-year and below analyst expectations.

To maintain its aggressive accumulation strategy, MicroStrategy filed to sell up to $2 billion in Class A shares, with proceeds intended for further Bitcoin purchases, stock buybacks, or debt repayment. The company also executed a 10-for-1 stock split to improve accessibility for retail investors.

Despite these moves, shares fell 6.36% to $1,511.81 post-earnings, reducing its market cap to $26.8 billion.

Michael Saylor, MicroStrategy’s executive chairman and a leading Bitcoin advocate, continues to frame Bitcoin as a superior treasury reserve asset—a view echoed by institutions like BlackRock.

FAQ: Understanding Market Moves

Q: What caused over 100,000 liquidations in one day?
A: A combination of high leverage, rapid price swings (over $3,000 in Bitcoin), and short-term bearish triggers like government wallet movements led to mass long-position liquidations.

Q: Is Bitcoin really tied to U.S. election outcomes?
A: Increasingly so. Since Trump’s pro-crypto stance became clear, Bitcoin has shown strong correlation with his perceived election odds—what analysts call the “Trump trade.”

Q: How does MicroStrategy afford so much Bitcoin?
A: The company uses cash flow from its software business and raises capital through stock offerings and debt instruments to fund BTC acquisitions.

Q: Was the U.S. government selling Bitcoin?
A: Not confirmed. While 29,800 BTC moved from a government-linked wallet, Arkham analysts believe it was likely transferred to institutional custody—not sold.

Q: Are institutional players still bullish on crypto?
A: Yes. BlackRock CEO Larry Fink calls Bitcoin “digital gold,” and Coinbase’s strong earnings show growing adoption despite regulatory challenges.

👉 See how institutional strategies shape today’s crypto markets.

Coinbase Posts Strong Earnings: A Sign of Maturation

In contrast to MicroStrategy’s losses, Coinbase delivered a robust Q2 performance. Revenue surged 105% year-over-year to $1.45 billion**, beating estimates of $1.39 billion. The company turned profitable with $36 million in net income**, compared to a $97 million loss last year.

Key drivers included:

The approval of spot Bitcoin and Ethereum ETFs by the SEC earlier this year marked a watershed moment for crypto legitimacy. Traditional finance giants like BlackRock and Fidelity entering the space has boosted investor confidence and expanded the market cap of the entire sector to $2.36 trillion, per CoinGecko.

Coinbase CEO Brian Armstrong expressed optimism: “We believe both major parties are moving toward constructive crypto policies. The dialogue has shifted fundamentally.”

The Road Ahead: Volatility Meets Institutional Adoption

While short-term price swings continue to challenge retail traders, long-term fundamentals appear stronger than ever. Core keywords defining this phase include:

These themes reflect a maturing ecosystem where macro forces—politics, regulation, and institutional capital—now play decisive roles alongside technical and on-chain metrics.

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As the 2024 U.S. election approaches, expect increased scrutiny on how policy proposals impact digital asset valuations. For now, the message is clear: crypto is no longer a fringe market—it's front-page news shaped by global events and billion-dollar decisions.