Bitcoin News Today: Leveraged Bets Collapse as $177M in Crypto Positions Wipe Out in 4 Hours

In the past four hours, the cryptocurrency market experienced $177 million in liquidations, with the majority stemming from short positions, according to recent data. This comes amid heightened volatility triggered by macroeconomic concerns and shifting investor sentiment. The selloff followed unexpected inflation data and uncertainty surrounding potential Federal Reserve rate cuts, which have amplified trading activity and leveraged position exposure.

Bitcoin, which had recently reached a record high above $124,000, saw a sharp correction, falling to as low as $114,706 within a 24-hour window. Ether also faced significant pressure, sliding nearly 9% at one point to $4,064. These declines were driven largely by traders forced to sell leveraged long positions at market prices to settle debts. According to CoinGlass, long positions in Bitcoin and Ether accounted for $124 million and $184 million in liquidations, respectively, over the past 24 hours. Short positions, however, also saw notable losses, with $177 million in ETH short liquidations reported in one hour alone [3].

The liquidations were exacerbated by elevated open interest levels, particularly in major altcoins. Glassnode reported open interest across top altcoins had hit a record $47 billion, increasing the market's sensitivity to sudden price swings. Analysts highlighted that such leverage levels can amplify both upward and downward moves, exposing traders during sharp corrections [3]. The impact was most pronounced on exchanges like Bybit, which reported $421.9 million in liquidations, and Binance, which recorded $249.9 million in losses, primarily from overleveraged long positions [2].

The broader market reaction reflects growing sensitivity to macroeconomic factors. Traders are closely monitoring U.S. economic data and Federal Reserve signals for clarity on the path of monetary policy. The latest Producer Price Index (PPI) data, which showed higher-than-expected inflation, raised concerns about the likelihood of a rate cut in September. As a result, investors have become increasingly cautious, leading to profit-taking and the unwinding of leveraged bets [2]. This dynamic was further underscored by comments from U.S. Treasury Secretary Scott Bessent, who indicated that the strategic Bitcoin reserve proposed by President Trump would be limited to forfeited assets [1].

Despite the selloff, some analysts view the pullbacks as strategic cooldowns rather than signs of a broader crisis. Support from crypto ETFs and institutional accumulation of Bitcoin and Ether has provided a cushion against more severe declines. For example, ETFs tracking Bitcoin and Ether recorded net inflows of $547 million and $2.9 billion, respectively, for the week [1]. However, recent daily outflows indicate that some investors remain cautious, particularly ahead of the Jackson Hole Economic Symposium, where Fed officials will address the path of monetary policy.

The liquidation wave has also underscored the growing interconnectedness between traditional financial markets and crypto. Japan’s July trade deficit, coupled with soft job growth data in the U.S., have further fueled uncertainty. As traders await the next major U.S. economic data releases and policy signals, the market is expected to remain in a holding pattern until more clarity emerges. The liquidation trends over the past 24 hours highlight the fragility of leveraged positions in highly volatile environments, reinforcing the need for robust risk management strategies in leveraged crypto trading [4].

Source:

[1] crypto-market-today.html (https://www.cnbc.com/2025/08/18/crypto-market-today.html)

[2] bullish-bets-lose-usd860m-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)

[3] bitcoin-flash-crash-to-118k-triggers-577m-liquidation-in-1-hour (https://cryptoslate.com/bitcoin-flash-crash-to-118k-triggers-577m-liquidation-in-1-hour/)

[4] over-500-million-liquidated-as-crypto-selloff-accelerates (https://unchainedcrypto.com/over-500-million-liquidated-as-crypto-selloff-accelerates/)