Bitcoin News Today: Bitcoin Dips Below $120K Amid Whale-Driven Liquidations and $1B Market Losses

Bitcoin recently experienced a sharp correction following a brief all-time high above $124,000, dropping below the $120,000 level in a matter of hours [1]. This sudden reversal has been largely attributed to the influence of large institutional and individual traders, often referred to as “whales,” whose leveraged positions played a critical role in amplifying the downturn [2]. The movements by these major investors have been linked to U.S. economic reports, including jobless claims, the producer price index, and retail sales data [1].

A staggering amount of Bitcoin, totaling 6,060 units or roughly $722 million, was moved to the Binance exchange within a day. Data from CryptoQuant indicates that these substantial deposits were primarily initiated by large-scale investors [1]. Reports also show a rise in Bitcoin’s reserves on Binance, suggesting anticipation for potential market instability. Such voluminous transactions often signal a change in investor sentiment [1].

The impact of these whale activities was particularly evident on the Hyperliquid platform, where three prominent traders faced devastating losses. One trader, known as James Wynn, saw his $87 million in profits evaporate, along with his $21.77 million principal, after a $1.23 billion long position in Bitcoin was liquidated [2]. Similarly, @qwatio, who had built $26 million in gains from a $3 million investment, lost his entire initial capital [2]. Another trader, AguilaTrades, was reduced from a substantial portfolio to just $30,000 in a matter of days [2].

The liquidation of these large positions triggered a cascade effect, increasing selling pressure and exacerbating the downward trend [2]. According to on-chain analyst @EmberCN, such events underscore the fragility of leveraged trading in a volatile market and the need for disciplined risk management strategies like stop-loss orders and position sizing [2].

The influence of whales was further evident in Bitcoin’s price dynamics. When the price rallied above $122,000 earlier in the week, whale activity—particularly on Coinbase—was seen as a key driver of the surge [3]. However, as the market corrected, the same whales faced significant losses. A large BTC position on the Venus platform was liquidated for 779.41 vbtc, valued at around $1.55 million, as the price fell below $120,000 [4].

Despite the recent sell-off, the HODLer Net Position Change indicator shows a shift away from a “bear market” trend [1]. This suggests that long-term investors are holding onto their positions through the turbulence, which could contribute to market stability and potentially support Bitcoin in returning to significant levels like $122,000 [1].

The rapid price swings led to over $1 billion in crypto market liquidations within a 24-hour period, with large holders stepping in to accumulate during the dip [5]. This suggests the potential for a short-term rebound, though the volatility remains a key concern for traders.

The events highlight the interconnectedness of whale activity and market stability. As leverage amplifies both gains and losses, the sudden liquidation of large positions can create ripple effects across the entire market. Traders are advised to remain cautious and to implement sound risk management practices to mitigate potential exposure [2].

Source:

[1] [Bitcoin Pulls Back Below $120K After New ATH as Whale ...](https://www.mitrade.com/insights/news/live-news/article-3-1041781-20250815)

[2] [Shocking Hyperliquid Whale Losses: Three Major Traders Face Devastating Crypto Trading Losses](https://coinmarketcap.com/community/articles/68e9472723c6e2c96a1f000/)

[3] [Bitcoin Falls Below $120K as Coinbase Premium Turns ...](https://thecurrencyanalytics.com/bitcoin/bitcoin-falls-below-120000-as-coinbase-premium-gap-turns-negative-190182)

[4] [BTC Falls Below $120K: Venus Whale Liquidated for 779.41 ...](https://blockchain.news/flashnews/btc-falls-below-120k-venus-whale-liquidated-for-779-41-vbtc-worth-usd-1-55m)

[5] [Crypto Market Liquidations Top $1B in 24 Hours: BTC, ETH ...](https://blockchain.news/flashnews/crypto-market-liquidations-top-1b-in-24-hours-btc-eth-volatility-risks-and-trading-checklist)