Bitcoin News Today: Bitcoin plummets 1.72% after U.S. inflation data triggers profit-taking and $1B in liquidations

Bitcoin's meteoric rise came to an abrupt halt on Thursday as the world's largest cryptocurrency, having just surpassed $124,000 for the first time, reversed course. The sharp pullback was attributed to unexpectedly high U.S. wholesale inflation data, which reversed recent gains and triggered a wave of profit-taking among traders [1]. The price of Bitcoin had previously climbed in response to a cooler-than-expected consumer inflation report earlier in the week, which had fueled speculation that the Federal Reserve could begin cutting interest rates in September [1].

As of the latest available data, Bitcoin has fallen 1.72% to $118,243, with a 24-hour trading volume of $108.89 billion according to CoinMarketCap. Ether also experienced a drop, declining 2% to $4,591.40 [1]. This decline follows a rally that saw Ether briefly approach its 2021 all-time high of $4,791.19 [1]. The S&P 500 and Nasdaq Composite had also reached record highs alongside the crypto rally, indicating a broader risk-on sentiment before the reversal [1].

From a technical perspective, Bitcoin’s four-hour chart shows signs of short-term weakness. The price, which had been on a strong upward trajectory until peaking at approximately $121,000 on August 13, broke below the upward trend line and the 50-period moving average [1]. The 50-day moving average remains above the 200-day line, suggesting that short-term optimism was present in the market not long ago. However, with the recent drop, sellers appear to have regained control. The increasing divergence between Bitcoin’s price and the 50-day average also signals potential for increased volatility in the near term [1].

Coinglass data reveals that over $1 billion in positions were liquidated in the past 24 hours, with long positions suffering the most, totaling $782 million and affecting over 219,000 traders. The largest single liquidation occurred on Bybit’s BTCUSD contract, where a $10 million position was wiped out [1]. The sudden and widespread liquidations highlight the fragility of the recent bullish momentum.

Looking ahead, while the short-term correction is evident, the medium-term outlook remains positive. Institutional interest and the ongoing trend of crypto adoption continue to support the broader bullish narrative. However, the recent pullback underscores the market’s sensitivity to macroeconomic developments, particularly inflation data, and the importance of managing risk in a highly volatile asset class [1].

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Source: [1] The (https://www.cryptotimes.io/2025/08/14/bitcoins-record-surge-ends-abruptly-as-price-dips-to-118k/)