Bitcoin fell nearly $3,000 on July 31, hitting an intraday low of $62,369. The 12-hour slide cost traders $100 million in liquidations and slashed Bitcoin's monthly gain from 10% to 4.5%. The drop came on the last day of July, tied to fading expectations around Federal Reserve policy.
The $3,000 slide
Bitcoin opened July 31 near $65,300 and started losing ground by midday. The sell-off accelerated into the evening, pushing the price to $62,369 before a modest bounce. Market capitalization fell from $1.3 trillion to $1.26 trillion — a $40 billion wipeout in a single session.
Traders caught off guard
Leveraged positions took the brunt. Over $100 million in long positions were liquidated across exchanges during the 12-hour window, according to data from Coinglass. The speed of the move left little time for margin calls, and several exchanges reported brief spikes in liquidation volumes.
Monthly gains cut in half
Before the drop, Bitcoin was on track for a 10% monthly gain — its best since March. The reversal cut that to 4.5%, a reminder of how quickly momentum can shift in a thin liquidity environment. The last day of July is typically quiet, making the move even more striking.
The Fed factor
Traders pointed to fading momentum around Federal Reserve rate-cut expectations. Earlier in July, markets had priced in a high probability of a September cut. But stronger-than-expected economic data late in the month cooled those bets, and Bitcoin — which has traded in lockstep with risk assets all year — sold off accordingly.
The question now is whether August will bring a recovery or further declines as markets reassess the rate outlook. No major catalysts are on the calendar for the first week of the month.
