Bitcoin News Today: Institutional Calm Masks Crypto's $4.44 Billion Liquidation Storm

Over the past 24 hours, global crypto markets experienced a significant downturn, with approximately $4.44 billion in liquidations affecting over 120,000 traders. This marked a sharp increase from earlier market activity and reflects growing concerns over macroeconomic conditions, particularly as inflationary pressures and policy uncertainty weigh on investor sentiment [1]. The drop in prices triggered a wave of forced liquidations, particularly for long positions in Bitcoin and Ether, as traders struggled to maintain leveraged positions amid heightened volatility.

Bitcoin fell to as low as $114,706, down 1.1% to $116,394.87, having previously reached an all-time high of $124,496 earlier in the week [1]. Ether also declined, dropping 2.5% to $4,354.00 after nearly touching its historical peak of $4,800. The decline was attributed to a combination of profit-taking by investors and new macroeconomic data that fueled uncertainty around potential Federal Reserve policy decisions [1]. Specifically, higher-than-expected wholesale inflation numbers for July raised questions about the timing of the Fed’s anticipated rate cuts, contributing to the sell-off.

According to data from Coin Glass, long positions in Bitcoin alone saw $124 million in liquidations, while Ether experienced over $184 million in forced sales [1]. The broader market, as measured by the CoinDesk 20 index, fell 1.2%, reflecting a broad-based correction. Related equities also saw mixed performance, with some crypto-linked stocks turning positive midday, despite overall losses. Notably, Coinbase and Galaxy Digital saw modest gains of 1.0% and 2.2%, respectively [1].

The market correction has been interpreted by some analysts as a strategic cooldown rather than a crisis-driven pullback. Institutional demand, particularly from crypto ETFs and corporate buyers, has helped provide a floor for prices despite short-term volatility [1]. For the week, Bitcoin ETFs recorded a net inflow of $547 million, while Ether ETFs saw a record $2.9 billion in inflows, marking their 14th consecutive week of positive flows [1]. This trend suggests that while retail sentiment may be shaken, institutional confidence remains relatively intact.

Looking ahead, investors are closely monitoring the Federal Reserve’s Jackson Hole symposium for potential policy signals, as well as the upcoming jobless claims data for further clues about the central bank’s future direction [1]. The outcome of these events could significantly influence short-term price movements, particularly in light of the market’s sensitivity to macroeconomic developments. In the interim, the crypto market remains in a consolidation phase, with Bitcoin hovering near its monthly average and Ether still up 15% year-to-date [1].

Source: [1] crypto-market-today (https://www.cnbc.com/2025/08/18/crypto-market-today.html) [2] bitcoin-adds-to-recent-pullback-as-crypto-liquidations-swell (https://seekingalpha.com/news/4486518-bitcoin-adds-to-recent-pullback-as-crypto-liquidations-swell)