Bitcoin News Today: Leveraged Traders Suffer $300M Loss as Bitcoin Plummets

Bitcoin fell below $112,000 in late Sunday trading, marking its lowest price in six weeks and triggering widespread liquidations across the crypto market. The sudden drop followed a brief rally earlier in the week fueled by Federal Reserve Chair Jerome Powell’s comments on potential interest rate cuts. However, the momentum quickly reversed, with Bitcoin plummeting to a low of $110,600 on most exchanges before partially recovering to trade just above $112,000. The sharp correction triggered over $300 million in liquidations within a single hour, with long positions accounting for nearly 90% of the losses, according to CoinGlass. Over 130,000 traders were liquidated in the same period, with the largest individual loss exceeding $12 million on OKX [1].

The volatility extended to other major cryptocurrencies, with Ethereum (ETH) also experiencing a sharp correction after reaching a new all-time high of nearly $5,000 earlier in the week. ETH dropped to around $4,700 before stabilizing at approximately $4,800. This broader market sell-off highlighted the fragility of leveraged positions across the crypto space and underscored the risks associated with rapid price swings. Altcoins mirrored Bitcoin’s movement, with many experiencing double-digit losses within a short window. The market’s reaction underscores the growing influence of leverage and algorithmic trading in shaping short-term price dynamics [1].

Despite the recent downturn, some market participants remain bullish on Bitcoin’s long-term trajectory. Eric Trump, a known advocate for Bitcoin, reiterated his prediction that the asset could reach $175,000 by the end of 2025 and eventually climb past $1 million. During a recent appearance at the Wyoming Blockchain Symposium, he described himself as a “bitcoin maxi” and emphasized the transformative potential of blockchain technology. Trump’s involvement in the crypto space has deepened, including plans to attend a shareholder meeting in Tokyo and participate in the Bitcoin Asia 2025 conference. He has also joined advisory roles with companies exploring digital asset strategies in Asia [2].

Meanwhile, institutional adoption of both Bitcoin and Ethereum continues to gain momentum. Ethereum, in particular, is benefiting from corporate treasury allocations and growing demand within the Base ecosystem. Projects like Aerodrome, Pendle, and Ethena are attracting attention as part of a broader Ethereum-driven narrative. These developments suggest that while Bitcoin remains the market’s bellwether, Ethereum and its related tokens are gaining traction among institutional investors and traders. However, the current market environment favors narratives over fundamentals, with attention rapidly shifting between sectors and projects [4].

The recent price correction has reignited debates about the possibility of Ethereum overtaking Bitcoin in market capitalization. While this scenario was considered improbable for years, the recent rally in ETH-related assets has prompted renewed discussion. Analysts point to factors such as institutional adoption, ecosystem development, and regulatory clarity as potential drivers for Ethereum’s long-term growth. Nonetheless, Bitcoin’s first-mover advantage and entrenched position as the leading digital asset remain formidable. The likelihood of a market-cap crossover would depend on continued innovation within the Ethereum ecosystem and broader macroeconomic conditions [3].

Source: [1] $300M in Longs Liquidated in 1 Hour: Bitcoin Crashes ... (https://cryptopotato.com/300m-in-longs-liquidated-in-1-hour-bitcoin-crashes-ethereum-rejected-at-5k/) [2] Bitcoin News: Eric Trump's BTC Price Predictions ... (https://www.coindesk.com/business/2025/08/23/eric-trump-makes-bitcoin-price-predictions-as-he-reportedly-gets-ready-to-visit-metaplanet) [3] Do you believe ETH market cap will ever eclipse BTC ... (https://www.reddit.com/r/CryptoCurrency/comments/1mz07u4/do_you_believe_eth_market_cap_will_ever_eclipse/) [4] A Comparative Analysis between BTC and ETH (https://www.tokenmetrics.com/blog/bitcoin-vs-ethereum?74e29fd5_page=2)