Bitcoin Traders Lose $100M as BTC Drops $3K in 12 Hours

Bitcoin fell nearly $3,000 on July 31, dropping to an intraday low of $62,369 and slashing its monthly gain from 10% to 4.5%. Market capitalization fell from $1.3 trillion to $1.26 trillion.

The cryptocurrency tumbled during a frantic 12-hour period, reversing gains from the previous day. Initially trading just off $65,000, Bitcoin briefly breached the threshold to reach an intraday peak of $65,340 before a sharp sell-off wave erased nearly all of its gains. Bitstamp data show that after a gradual decline to just under $63,600, a sharp sell-off lasting less than an hour dragged Bitcoin to $62,369, its lowest since July 17. A relief rally brought it back from the brink of dipping below $62,000, but the recovery failed to trim much of its earlier losses, leaving it with a daily loss of approximately 3%.

In the derivatives market, the price action was particularly brutal for traders with overleveraged long bets. Market data show that $100 million in long bets was wiped out, a fourfold increase from the $23 million liquidated 24 hours earlier. The value of short bets liquidated in the same period was nearly $21 million. Overall, the crypto economy saw nearly $360 million in leveraged positions wiped out, with long bets accounting for nearly $235 million, or 65% of the total.

While the Federal Reserve’s decision to hold rates steady helped fuel Bitcoin’s rally earlier in the week, a lack of progress in the U.S. Senate on the CLARITY Act dampened market sentiment. The legislative stalls prompted Sen. Cynthia Lummis to again plead with colleagues to pass the bill before the August recess. However, with Senate Majority Leader John Thune yet to allocate floor time and the bill short of the 60 votes needed to pass, prediction markets have slashed the odds of its 2026 passage to roughly 30%—down from over 80% in February. Stalling the measure leaves the crypto market without a regulatory framework that analysts say is key to sustaining long-term growth.

Source: https://news.bitcoin.com/market-updates/bitcoin-traders-lose-100m-as-btc-drops-3k-in-12-hours/