Bitcoin News Today: Bitcoin Plummets 7% Amid $500M Liquidations and Tightening U.S. Treasury Policies

Bitcoin fell to an 11-day low on August 19, 2025, amid a wave of $500 million in market liquidations, driven by sharp price corrections and tightening U.S. Treasury policies. The cryptocurrency dropped below $115,000—over 7% from its recent high of $124,000—as traders rushed to close long positions, triggering broader market instability [2]. The selloff extended beyond Bitcoin, with Ethereum (ETH), XRP, and Dogecoin (DOGE) each declining nearly 9%, particularly in the derivatives segment [4].

Leveraged long positions bore the brunt of the losses, with bullish bets losing over $860 million in a single day, according to CoinGlass data [4]. Exchanges such as Binance and Coinbase reported increased activity in short-term futures and options as investors sought to hedge against continued downward pressure [6]. The selloff also coincided with movements in traditional markets, as the Nasdaq and S&P 500 mirrored crypto’s volatility, underscoring the deepening link between digital and conventional assets [1].

Despite the broader market downturn, Chainlink (LINK) demonstrated relative resilience. Unlike most altcoins, which followed Bitcoin’s downward trajectory, Chainlink maintained key support levels and drew renewed attention from arbitrage and index funds [6]. Analysts attributed this performance to Chainlink’s robust oracle infrastructure and recent strategic partnerships, though uncertainty over U.S. Treasury policies continued to cloud its longer-term outlook [2].

The selloff unfolded against a backdrop of renewed discussions on U.S. fiscal tightening, with policymakers hinting at potential regulatory actions in the crypto derivatives market to address speculative trading [4]. Speculation is growing that the Federal Reserve’s upcoming meeting could introduce new constraints on leverage, further amplifying bearish sentiment.

While the short-term outlook remains uncertain, some investors remain bullish on Bitcoin’s long-term potential. A report from CryptoDnes suggested that Bitcoin could reach $148,000 in the current cycle, though such predictions depend heavily on broader macroeconomic stability [5].

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Source:

[1] title: Best Wallet Token: News & Updates - CryptoDnes EN

(https://cryptodnes.bg/en/tag/best-wallet-token/)

[2] title: Real-Time Crypto News, Latest Cryptocurrency Updates

(https://www.coinglass.com/news)

[4] title: XRP Price, XRP Price, Live Charts, and Marketcap

(https://www.coinbase.com/en-ca/price/xrp)

[5] title: Press Release - Page 4 of 36 - CryptoDnes EN

(https://cryptodnes.bg/en/news/pressrelease/page/4/)

[6] title: Coinspeaker's Profile

(https://www.binance.com/en/square/profile/coinspeaker)