Bitcoin News Today: Cryptocurrency Market Loses $100 Billion in 24 Hours Amid Sharp Correction

The cryptocurrency market underwent a dramatic correction between August 11 and 17, 2025, with over $100 billion in market value erased within 24 hours as key tokens, including Bitcoin (BTC) and Ethereum (ETH), experienced significant price fluctuations [1]. The rapid decline reflected broader institutional strategy shifts and a liquidity reallocation across the digital asset landscape [1].

Bitcoin reached as high as $124,000 before retreating to below $118,000, while Ethereum mirrored similar volatility with sharp peaks and subsequent retracements [1]. The correction was not isolated to top-tier assets; it rippled through altcoins and DeFi markets, with many tokens registering substantial losses while a few recorded gains amid the turbulence [1].

On-chain data revealed that 3.35 million Bitcoin—nearly 17% of the total circulating supply—had remained unmoved for over a decade [1]. This highlights the relative stability of long-term holders and suggests that panic selling was not widespread among core investors. However, derivatives and futures markets showed heightened volatility, with institutional traders adjusting positions in response to shifting risk sentiment [1].

The correction coincided with broader macroeconomic uncertainties and policy developments, including anticipated Federal Reserve reports and institutional filings that signaled potential market interventions [1]. A Federal Reserve official indicated that the upcoming release of monetary policy minutes would likely influence risk assets, including cryptocurrencies [1]. This uncertainty contributed to a risk-off environment, with investors shifting capital away from high-risk assets into more stable alternatives [1].

The correction also coincided with a rare week of outflows from U.S. Bitcoin and Ethereum ETFs, with nearly $1 billion withdrawn over the course of the week [1]. This marked the first such outflow in nearly four months and underscored the sensitivity of both institutional and retail investors to traditional market signals [1]. However, by August 6, Bitcoin ETFs saw a reversal, recording $91.5 million in net inflows after four consecutive days of outflows [1].

Analysts suggest that the correction may represent a necessary consolidation phase following Bitcoin’s record high in June 2025 [1]. Historical patterns indicate that such corrections are often precursors to further price movements, particularly if macroeconomic conditions stabilize or regulatory clarity emerges [1]. While the immediate outlook remains volatile, early on-chain metrics suggest a potential cooling-off in Bitcoin’s sharp price decline, with reduced sell pressure and signs of a possible rebound [1].

Source:

[1] Weekly Crypto Update: August 11 to August 17 (https://web.ourcryptotalk.com/blog/weekly-crypto-update-august-17-2025)