DIGIVESTASI - The price of Bitcoin (BTC) plunged over 3% in early Asian trading, alongside a broader stock market decline and weakening sentiment towards risk assets like cryptocurrencies. On Thursday (July 25), Bitcoin's price dropped from US$65,500 (Rp 1.07 billion) to nearly US$64,000 (Rp 1.04 billion) within minutes of trading starting in Tokyo.

This sharp decline led to the liquidation of over US$250 million (Rp 4.08 trillion) in bullish bets, marking Bitcoin's worst hit since early July. Liquidation occurs when exchanges forcibly close leveraged trader positions because the trader's initial margin is partially or fully lost. This data is significant for traders as it indicates the removal of leverage from popular futures products, serving as a short-term indicator of decreasing price volatility. The CoinDesk 20 (CD20) Index, which tracks the largest tokens by market capitalization excluding stablecoins, fell 3.3%.

Coindesk reported that long Ether (ETH) positions experienced the largest losses, reaching US$100 million (Rp 1.06 trillion), triggered by a 7.5% drop in the token due to outflows from the newly launched Ethereum ETF.

Binance recorded the highest liquidations among exchanges at US$118 million (Rp 1.93 trillion), with 88% originating from long trades. OKX and Huobi, popular among Asian traders, reported liquidations of 94% of the long positions opened on their exchanges. This decline coincided with a drop in U.S. tech stocks, causing the Nasdaq 100 index to lose 660 points on Wednesday (July 24), the largest decline since 2022.

Mixed quarterly earnings from Alphabet (GOOG) and Tesla (TSLA) led to a 12% drop in their shares on the same day. Overall, the "Magnificent 7" tech stocks lost over US$750 billion (Rp 1,224.5 trillion) in market capitalization, a record high for the group. These losses spilled over to Asian markets on Thursday (July 25) morning, with Japan's Nikkei 225 falling more than 3% amid concerns that the Bank of Japan may raise interest rates.

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