Bitcoin News Today: The Liquidator Strikes: $1B in Crypto Bets Wiped Out in 4 Hours

Over the past four hours, the cryptocurrency market has experienced significant liquidations, with Ethereum (ETH) and Bitcoin (BTC) bearing the brunt of the volatility. According to CoinGlass data, Ethereum liquidations totaled approximately $181 million, while Bitcoin liquidations reached $41.5092 million. These figures highlight the heightened leverage in the market and the sensitivity of crypto assets to rapid price swings. The ETH liquidations, in particular, were heavily concentrated in long positions, as the price surged from $4,200 to $4,650, marking a 10% gain [2].

The liquidation spike followed a sharp correction in BTC’s price after it hit an all-time high of $124,500. BTC is now trading near $113,244–$115,517, having lost over $250 billion in market capitalization in just one week [1]. The sell-off was exacerbated by profit-taking and growing macroeconomic uncertainties, particularly around the Federal Reserve’s monetary policy. The Fear & Greed Index has dropped to 56, signaling a shift in sentiment from optimism to caution [1].

CoinGlass reports that more than $1 billion in trader liquidations occurred across the market, with 95% of those losses attributed to long positions. Within a single hour, $116 million in Bitcoin longs and $170 million in Ethereum longs were liquidated [1]. These large-scale liquidations suggest that the market is experiencing a significant unwinding of leveraged positions, particularly among speculative traders who had anticipated continued bullish momentum.

The broader market environment has also been affected by ETF outflows and shifting institutional sentiment. Spot Bitcoin ETFs posted a net outflow of $121 million, with major funds like BlackRock’s IBIT and Fidelity’s FBTC shedding substantial amounts of capital [1]. This shift raises questions about institutional confidence amid the ongoing price consolidation. At the same time, long-term investors are continuing to accumulate, with institutional whales purchasing large quantities of BTC and ETH to expand their holdings [1].

Ethereum’s performance has been closely linked to broader macroeconomic factors and institutional behavior. The recent liquidation of $150 million in ETH shorts underscores the asset's volatility and the shifting risk appetite among market participants [2]. Some large traders have opted to move their Bitcoin holdings into Ethereum, citing better leverage opportunities and a more mature institutional infrastructure [3]. This capital rotation reflects a growing belief that Ethereum has more upside potential than Bitcoin at current price levels.

Looking forward, the market will closely watch Federal Reserve Chair Jerome Powell’s upcoming Jackson Hole speech for any hints on future rate cuts. The Fed’s policy direction will play a critical role in determining the next trajectory of BTC and ETH. Polymarket odds have shifted, with an increased probability of no September cut due to concerns over inflation and potential tariff impacts [1]. If the Fed signals a dovish stance, it could inject fresh liquidity into the market and trigger a rebound in crypto prices.

Technical indicators suggest that BTC remains in a consolidation phase, with key support and resistance levels defining near-term price action. A break below $112,000 could lead to further downside toward $105,000–$107,000, while a rebound above $118,047 could rekindle the rally toward $120,374–$124,000 [1]. ETH, meanwhile, is showing mixed signals, with Bitcoin’s dominance slipping back to 59% as altcoin performance varies [1]. The market remains highly sensitive to macroeconomic developments and institutional activity.

Source:

[1] BVL009: The liquidator comes calling - Bitcoin Vector Lite (https://willywoo.substack.com/p/bvl009-the-liquidator-comes-calling)

[2] Bitcoin and Ether's Swift Spike Prompts $375M in Crypto ... (https://www.coindesk.com/markets/2025/08/22/btc-rebounds-2-6-as-eth-notches-10-gain-to-prompt-usd320m-in-liquidations)

[3] BTC whale dumped their bitcoin bags for ethereum ... (https://www.reddit.com/r/CryptoMarkets/comments/1mw7bwo/btc_whale_dumped_their_bitcoin_bags_for_ethereum/)