Bitcoin News Today: Global Crypto Market Loses $100 Billion After Surging U.S. Inflation Triggers Selloff

Over $100 billion in market capitalization was wiped from the global cryptocurrency market in a 24-hour span as the sector faced a sudden selloff in late July and early August 2025. The downturn was triggered by a hotter-than-expected U.S. inflation report, which heightened volatility across key crypto assets and led to broader financial market corrections [1][2]. Bitcoin, which had reached a record high of $123,400 earlier in the week, tumbled to under $118,000 within days, with Ethereum and other major altcoins also experiencing sharp declines [3].

The rapid price action triggered significant liquidations in crypto derivatives markets, with over $1 billion in leveraged positions being closed in a 24-hour period, most of which were long positions [4]. This selloff particularly affected derivatives traders and led to a wave of panic among leveraged participants. The decline in Bitcoin also pushed trading volume to $107 billion, as investors scrambled to reassess their exposure [2].

Despite the turbulence, institutional players appeared to be taking a different approach. BlackRock’s Bitcoin and Ether ETFs purchased over $1 billion in assets in a single day as prices dropped more than 5%, signaling a strategic move to capitalize on the selloff [7]. Analysts have generally viewed the drop as a healthy correction rather than a crash, emphasizing that the liquidations reflect normal profit-taking after months of strong gains [6].

Retail traders, however, were more shaken. Reports indicated signs of buyer exhaustion among retail participants following weeks of aggressive price surges, raising concerns about market sentiment and potential fatigue [8]. Yet, continued inflows into ETFs and the absence of significant macroeconomic shifts suggest that the underlying fundamentals of the crypto market remain stable.

The selloff was also influenced by broader economic indicators. A surprise increase in the U.S. producer price index (PPI) reinforced expectations of prolonged high interest rates, contributing to a broader market pullback [9]. This event highlighted the growing sensitivity of the crypto market to macroeconomic data, mirroring patterns seen in traditional financial markets.

While the short-term outlook remains volatile, analysts emphasize that the market is still in an early phase of institutional adoption. A single sharp correction is unlikely to derail major long-term trends, especially as some tokens have shown resilience amid the broader selloff [5]. The event has underscored both the inherent risks and the potential for continued growth in the crypto space.

[1] Bitcoin has plummeted after soaring to a fresh all-time high this week, with the combined crypto market losing well over $100 billion despite Elon Musk quietly... See more, Forbes, https://www.forbes.com/sites/digital-assets/2025/08/15/treasury-secretary-reveals-us-bitcoin-surprise-triggering-price-shockwaves/

[2] Crypto markets fell $133 billion after hot inflation data triggered over $1 billion in liquidations, though analysts view it as healthy profit-taking. Trader... See more, CoinCentral, https://coincentral.com/why-is-crypto-down-today-heres-what-happened-4/

[3] Bitcoin's price unexpectedly dropped from over $121,000 to under $118,000, causing significant liquidations nearing $1 billion and impacting over 200,000... See more, Reddit, https://www.reddit.com/r/CryptoCurrency/comments/1mpzsj5/bitcoin_suddenly_crashes_under_118k_as/

[4] Bitcoin has pulled back sharply from its fresh all-time high of $123,400, dropping to $117,400 on Thursday. The correction took place as a hotter-than-expected... See more, CoinGlass, https://www.coinglass.com/ru/news/534145

[5] Bitcoin has fallen by more than 3% to around $119K, while over $860 million in long positions were liquidated in 24 hours. Yet, some altcoins showed resilience... See more, 99Bitcoins, https://99bitcoins.com/news/altcoins/why-did-crypto-crash-today-xrp-and-xlm-falling-eth-sol-ada-skyrocketing/

[6] Bitcoin's drop to $118,000 led to over $1 billion in liquidations across the crypto market, viewed by analysts as a healthy profit-taking phase rather than a... See more, The, https://m.economictimes.com/crypto-news-today-live-14-aug-2025/liveblog/123288029.cms

[7] Key points: BlackRock's Bitcoin and Ether ETFs bought over $1 billion on Thursday while prices tanked 5% or more. Institutions are interested in “buying the dip... See more, CoinGlass, https://www.coinglass.com/ru/news/534794

[9] U.S. July PPI Surges, Triggers Crypto Market Sell-Off: Best Crypto To Buy During This Dip? Let's try to answer why the crypto market is down today. See more, XT.com, https://www.xt.com/en/blog/community-news/2025-08-15T14:00:00.000Z