Bitcoin News Today: Bitcoin plunges 5% triggering $577 million liquidations in 1 hour

Bitcoin experienced a sharp 5% drop on August 14, 2025, falling below $118,479 and triggering a wave of panic across the cryptocurrency market. The decline came less than 24 hours after the asset hit an all-time high above $124,000, marking a significant reversal in a short span [1]. The selloff led to $577 million in liquidations within just one hour, according to data from Coinglass, with long traders accounting for the majority of the losses [1].

Long positions, which had profited from the recent bullish trend, were hit hardest, losing $545 million in the span of an hour. Short positions lost $31 million during the same period. Ethereum traders bore the brunt of the losses, with over $177 million in liquidations. Bitcoin liquidations totaled $113 million, while XRP and Solana saw losses of $44 million and $39 million, respectively [1].

The broader crypto market mirrored Bitcoin’s downward spiral. Ethereum fell 4% to $4,581, while XRP dropped over 3% to $3.11. Other top-ten cryptocurrencies, including Dogecoin, Solana, and BNB, also saw losses exceeding 3% in the same timeframe [1].

This sudden correction follows a period of sustained bullish momentum, with many traders and investors expecting the upward trend to continue. However, analysts had previously warned of potential risks. On August 13, blockchain analytics firm Glassnode reported that open interest across major altcoins had surged to a record $47 billion [1]. Such high leverage levels can amplify both gains and losses during volatile periods, exposing traders to heightened risk during sharp price swings [1].

When looking at a 24-hour window, total liquidations climbed to $1.05 billion, with long positions accounting for $778 million of that total. The data underscores the extreme volatility of the crypto market, where leveraged positions can be wiped out in a matter of hours [1].

The incident serves as a stark reminder of the unpredictable nature of crypto trading. While strong uptrends can generate significant profits, they are often followed by equally sharp pullbacks. Traders are increasingly being urged to adopt robust risk management strategies amid the market’s heightened sensitivity to leverage and liquidity shifts [1].

Bitcoin’s price at 2:54 pm UTC on August 14 was $118,554.02, a 2.23% drop over the previous 24 hours. The total crypto market was valued at $4.03 trillion, with Bitcoin maintaining a dominance of 58.67% [1].

Source: [1] [Bitcoin’s 5% flash crash to $118k triggers $577 million liquidation in 1 hour](https://cryptoslate.com/bitcoin-flash-crash-to-118k-triggers-577m-liquidation-in-1-hour/)