Bitcoin News Today: Bitcoin plummets 6.72% as $576M in crypto positions liquidated

Bitcoin fell sharply in late July and early August 2025, triggering widespread panic across the cryptocurrency market. The selloff was marked by massive liquidations, with traders losing hundreds of millions of dollars in a matter of hours. On August 9 alone, nearly $576 million in positions across crypto markets were forcibly closed, with $124 million of those losses coming from Bitcoin long positions [4]. The drop came after the cryptocurrency had reached a record high of $124,500, only to retreat to levels below $115,000 within days, sparking fears of a broader market correction [5].

The price action was driven by a combination of factors, including profit-taking from recent gains and heightened concerns over U.S. monetary policy. Traders cited unexpected inflation data and the upcoming Jackson Hole symposium, where Federal Reserve Chair Jerome Powell would outline the central bank’s stance on interest rates. According to Mosaic Asset, investors are closely watching Powell’s speech for clues on whether the Fed might adopt a more accommodative stance [6]. The uncertainty over future rate decisions has created a volatile backdrop for crypto markets, which tend to react strongly to macroeconomic signals.

The selloff also revealed structural weaknesses in the market. One notable indicator was the sharp decline in Bitcoin’s 30-day Coin Days Destroyed, suggesting a shift in investor sentiment toward caution [3]. Additionally, the lack of trading volume over the past several months has raised concerns among analysts about the sustainability of Bitcoin’s previous rally. Roman, a well-known market observer, emphasized that the drop of more than $10,000 from its peak had occurred in an environment of weak volume, signaling potential fragility in the market’s recent bullish momentum [7].

The liquidation event was not isolated to Bitcoin. Altcoins like Ethereum and XRP also saw significant losses, with over $500 million in positions liquidated across the broader market in the past 24 hours [8]. The cascading sell-off highlighted the interconnected nature of crypto assets and the vulnerability of leveraged positions during periods of sharp volatility.

Despite the turmoil, some analysts remain cautiously optimistic. Bitcoin remains above its 21-day moving average, a technical level that typically indicates continued bullish momentum. However, Material Indicators warned that while this level may provide some short-term stability, it does not guarantee a breakout or sustained rally in the near term [7]. The Coinbase Premium, which reflects the price difference between the exchange and other platforms, also remained positive, suggesting continued institutional interest in the U.S. market [7].

Market participants are now closely watching the coming weeks for signs of a recovery or further correction. Some traders believe the drop is a healthy retracement within a larger bull cycle, while others fear it could signal the start of a broader bearish phase. Peter Brandt, a veteran trader known for his long-term market analyses, has suggested that if historical post-halving cycles repeat, Bitcoin could reach $280,000 by the end of the year [7]. However, such a forecast is speculative and depends on the evolution of macroeconomic conditions and regulatory developments.

The market’s resilience and eventual direction will likely depend on several key factors, including the Fed’s policy decisions, volume patterns, and the broader economic environment. As Bitcoin enters a period of uncertainty, investors are being urged to exercise caution and monitor key support levels, such as $114,000, which many analysts view as a critical area for the cryptocurrency to hold in the coming weeks [7].

Source:

[1] title: Bitcoin sinks after record high, crypto market in turmoil as ... (https://m.economictimes.com/news/international/us/bitcoin-crashes-to-115000-after-record-high-as-500-million-liquidation-shock-hits-crypto/articleshow/123367214.cms)

[2] title: Bitcoin's 6.72% Drop Triggers Liquidity Sweeps and Open ... (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-6-72-drop-triggers-liquidity-sweeps-open-interest-surge-2508/)

[3] title: Bitcoin 30-Day Coin Days Destroyed See Sharp Decline ... (https://www.mitrade.com/insights/news/live-news/article-3-1048411-20250818)

[4] title: Bitcoin Price Drops to $115K After $124K Peak as Fed and ... (https://www.tradingnews.com/news/bitcoin-price-falls-to-115k-usd)

[5] title: Bitcoin Faces a Tense Week Amid Correction and Mixed ... (https://www.cointribune.com/en/bitcoin-faces-a-tense-week-amid-correction-and-mixed-signals/)

[6] title: Inflation Shock Sends Crypto Tumbling: $133B Wiped Out ... (https://www.binance.com/en/square/post/28470257027698)

[7] title: Bitcoin News Today: Crypto Market Slumps as $500M in ... (https://www.ainvest.com/news/bitcoin-news-today-crypto-market-slumps-500m-longs-liquidated-powell-speech-2508/)

[8] title: Bitcoin tests key 50-day EMA support as Ethereum, XRP ... (https://www.fxstreet.com/cryptocurrencies/news/crypto-today-bitcoin-ethereum-xrp-risk-further-losses-as-liquidations-cross-500-million-202508181127)