Bitcoin News Today: Traders' Bets Shattered as Bitcoin Whipsaw Liquidates $600M in 24 Hours

Bitcoin’s volatile price movements in late August led to significant losses for leveraged traders, with over $300 million in long positions liquidated in a single hour as the asset dropped to a six-week low. The crash occurred following a brief rebound that had caught traders off guard, prompting substantial short liquidations the prior week. Bitcoin’s sharp move lower came after a brief but strong rally on Friday, during which the price surged over 4% to an intraday high of $117,300 amid expectations of an interest rate cut by the Federal Reserve. This rally led to the liquidation of $379.88 million in short positions, according to CoinGlass, with Ethereum accounting for nearly half of that total. However, the bullish momentum was short-lived, and Bitcoin quickly retraced, eventually falling to $110,600 by Sunday evening, wiping out over $300 million in long positions in a single hour [3].

The sudden volatility caught many traders off guard, with CoinGlass data indicating that 150,217 traders were liquidated over the period. The liquidation heatmap showed Bitcoin breaking through key support levels, with over $259.5 million in ask orders concentrated between $117,000 and $118,000 being wiped out [1]. Analysts attributed the initial upward move to investor sentiment shifting in favor of risk-on assets as Fed Chair Jerome Powell hinted at a potential September rate cut during his Jackson Hole speech. This led to a rapid price increase, with Bitcoin bouncing off a six-week low of $111,600 and surging to $117,300 within hours [1].

The broader crypto market also experienced significant swings during this period, with Ethereum leading gains before suffering a sharp correction. Ether’s price jumped nearly 15% to $4,760 before retreating, resulting in $193 million in liquidations as traders were caught in a sudden shift in sentiment [1]. The altcoin market showed mixed performance, with some assets like LDO and ENA continuing to rise amid regulatory clarity on staking, while others followed Bitcoin lower [2]. The rise in open interest to a four-day high indicated that leveraged traders remained active in the market despite the volatility, suggesting that the price action was driven by both retail and institutional participants [2].

Market analysts have expressed cautious optimism about Bitcoin’s short-term outlook. Michael van de Poppe, founder of MN Capital, noted that the recent price sweep below $112,000 had provided a good entry point for traders, signaling a potential resumption of the uptrend. He emphasized that the market had shown signs of strength, with the price quickly recovering from a key support level [1]. Meanwhile, other analysts such as André Dragosch from Bitwise suggested that macroeconomic developments—such as U.S. President Donald Trump’s proposed changes to 401(k) plans—could push Bitcoin to $200,000 by year-end [1]. These forecasts underscore the continued influence of regulatory and monetary policy developments on the crypto market.

Despite the sharp price swings, there has been growing institutional and retail interest in cryptocurrencies, particularly among Asian investors. Wealthy individuals and family offices in China, Hong Kong, and Singapore have been increasing their exposure to digital assets, driven by favorable regulatory developments and strong market performance. Swiss bank UBS reported that some Chinese family offices are targeting crypto allocations of up to 5% of their total assets, with younger generations showing increased participation in the space. This trend is supported by a rise in trading activity on regional exchanges, with platforms like HashKey in Hong Kong reporting an 85% year-on-year increase in registered accounts [5]. As Asian investors continue to adopt crypto as part of their diversified portfolios, the market remains sensitive to macroeconomic shifts and regulatory developments.

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[1] Bitcoin price breakout to $117K liquidates bears, opening door to fresh all-time highs (https://cointelegraph.com/news/bitcoin-price-breakout-to-dollar117k-liquidates-bears-opening-door-to-fresh-all-time-highs)

[2] BTC rebounds 2.6% as ETH notches 10% gain to prompt $320M in liquidations (https://www.coindesk.com/markets/2025/08/22/btc-rebounds-2-6-as-eth-notches-10-gain-to-prompt-usd320m-in-liquidations)

[3] $300M in longs liquidated in 1 hour: Bitcoin crashes as Ethereum rejected at $5k (https://cryptopotato.com/300m-in-longs-liquidated-in-1-hour-bitcoin-crashes-ethereum-rejected-at-5k/)

[4] Asia Morning Briefing: BTC demand cools while 'crypto capital' is getting more selective—OKX’s Gracie Lin warns (https://www.coindesk.com/markets/2025/08/21/asia-morning-briefing-btc-demand-cools-while-crypto-capital-is-getting-more-selective-okx-s-gracie-lin-warns)

[5] Asia's wealthy investors direct liquidity into as Bitcoin gains traction (https://www.mitrade.com/insights/news/live-news/article-3-1059144-20250821)