Bitcoin News Today: Crypto Market Loses $860M as BTC Falls 5% on Inflation Fears and Profit-Taking

Bitcoin and other major cryptocurrencies experienced a sharp sell-off on August 14, 2025, causing $860 million in losses as long positions were liquidated across major exchanges [1]. The decline followed a brief rally in which Bitcoin surged above $123,500 before retreating to around $117,000 [1]. Ethereum, XRP, and Dogecoin also saw significant price drops, with Ethereum traders alone losing $348.9 million [1].

The sharp correction was attributed to a combination of profit-taking and renewed concerns over macroeconomic conditions, particularly after recent inflation data exceeded expectations [2]. This shift disrupted the market’s positive momentum and led to a pullback in institutional flows, as investors grew cautious amid uncertainty around U.S. Federal Reserve policy [1]. The broader crypto market capitalization fell to $3.9 trillion, down from a peak of over $4.2 trillion just weeks prior [5].

The largest liquidation event was a $6.25 million ETH-USDT perpetual swap on OKX, highlighting the growing sensitivity of crypto markets to macroeconomic variables such as inflation and interest rates [1]. This volatility underscores the challenges faced by traders and investors in a market still adapting to the rhythms of macroeconomic policy cycles.

Historically, similar shocks have resulted in short-term pullbacks without fundamentally altering long-term trends. Analysts suggest that while the sell-off reflects heightened exposure to global liquidity shifts, the underlying fundamentals—such as blockchain adoption and regulatory clarity—remain supportive of a sustained bull market [3]. Nick Ruck, Director of LVRG Research, noted that “we’re optimistic that the market will rebound as the fundamental values of crypto driving the bull run remain in place” [1].

The recent event serves as a reminder of the inherent risks in leveraged trading and the importance of monitoring macroeconomic indicators. As markets digest the latest developments, traders are now looking to early September labor data for further signals on the Fed’s policy trajectory [1].

Source:

[1] Bullish Bets Lose $860M to Liquidations as ETH, BTC, XRP, DOGE Price Drop 9% (https://www.coindesk.com/markets/2025/08/15/bullish-bets-lose-usd860m-to-liquidations-as-eth-btc-xrp-doge-price-drop-9)

[2] Why Dogecoin Is Plummeting Today (https://finance.yahoo.com/news/why-dogecoin-plummeting-today-203825429.html)

[3] Rate Cut Fever, Crypto Records & Tariff Turmoil (https://ts2.tech/en/rate-cut-fever-crypto-records-tariff-turmoil-august-2025s-global-business-bombshells/)

[5] Media Man Int on X (https://x.com/mediamanint/status/1956116348834341152)