Bitcoin News Today: Traders Reeling as $500M in Crypto Positions Wipe Out Amid Inflation Fears

Over the past 24 hours, the cryptocurrency market experienced widespread liquidations totaling $433 million, with over 150,000 traders affected. This sharp sell-off occurred amid broader macroeconomic uncertainty and a decline in leading crypto assets. Bitcoin, the largest cryptocurrency by market capitalization, dropped below the $109,000 threshold, reaching a level not seen since early July. CoinGecko data indicates that Bitcoin traded as low as $108,617, marking a nearly 4% decline within the 24-hour period. Over the past month, the asset has lost approximately 8%, and it now trades 12% below its recent all-time high of $124,128 [1].

Ethereum also saw significant losses, falling to $4,295—a 6% decline in the last 24 hours. The second-largest cryptocurrency had previously reached a record high of $4,946 but has since lost about 13% of its value. The broader altcoin market followed a similar trajectory, with XRP and Solana both experiencing double-digit declines. Ripple’s XRP dropped below $2.84, while Solana fell to $209 after reaching a six-month high above $217 just days earlier [1].

The liquidation figures reflect the scale of the downturn. Data from CoinGlass indicates that $446 million in long positions across all cryptocurrencies were liquidated in the last 24 hours, with the total value of liquidated positions—including both longs and shorts—reaching $535 million. Another source reports slightly higher liquidation figures, with $480 million in long positions being wiped out and $589 million in total liquidations recorded [2].

The market turmoil coincided with the release of the U.S. personal consumption expenditures (PCE) price index, which showed core inflation at 2.9% in July, matching estimates but exceeding the previous month’s figure. Analysts noted that the data increased fears of prolonged inflation, which has historically weighed on risk assets like Bitcoin and Ethereum. The S&P 500 and Nasdaq also suffered, dropping 0.6% and 0.9%, respectively, further indicating a broader market risk-off sentiment [1].

Market observers and analysts remain divided on the short-term outlook. While some fear further declines, others believe Ethereum could rebound to a new all-time high of $5,000 by the end of the year, with a 75% likelihood assigned to this forecast [1]. Meanwhile, Bitcoin’s price action has drawn comparisons to the 2021 market cycle, and analysts stress the importance of maintaining support above $108,700 to avoid a deeper correction. A breakdown below that level could trigger a 15% drop, potentially bringing the price down to $94,000 [2].

Source:

[1] Crypto Liquidations Top $500 Million as Bitcoin, Ethereum (https://finance.yahoo.com/news/crypto-liquidations-top-500-million-145625387.html)

[2] Crypto Market Faces $480M Liquidations as PCE Data (https://coincentral.com/crypto-market-faces-480m-liquidations-as-pce-data-sparks-decline/)