Bitcoin News Today: Whales Triggered $212M Crypto Liquidation Frenzy in 60 Minutes

On Sunday, August 24, 2025, the cryptocurrency market experienced a sharp and volatile downturn, with Bitcoin dropping from $114,700 to $110,600 within minutes. This sudden decline triggered the liquidation of over $212 million in leveraged long positions within just an hour, according to data from multiple on-chain analytics platforms such as CoinGlass and TradingView. Ethereum and Solana also faced significant selling pressure, with Ether positions alone accounting for $150 million in liquidations during the four-hour period following the price rebound [4]. The rapid liquidation event underscores the high leverage and concentration of long positions in the market, especially during periods of thin liquidity on weekends [1].

The sell-off was attributed to a combination of macroeconomic uncertainty, profit-taking, and the slowing momentum of ETF inflows. Hotter-than-expected U.S. inflation and producer price index (PPI) data fueled risk-off sentiment globally, compounding concerns after Federal Reserve Chair Jerome Powell's cautious remarks at the Jackson Hole Symposium. The speech led to renewed fears that the Fed might maintain higher interest rates for longer, dampening demand for risk assets like Bitcoin. Despite these headwinds, Bitcoin's bounce from a key support level at $111,800 indicated a potential reversal in the short-term trend [4].

Sundays have increasingly become a focal point for liquidity-driven volatility in the crypto market, particularly due to reduced institutional activity and thinner order books. This environment allows large market participants—commonly referred to as "whales"—to influence price action by triggering stop-loss orders and cascading liquidations. In this case, a large seller was identified as the catalyst, unloading a substantial Bitcoin position and triggering a chain reaction of leveraged long liquidations. According to on-chain analyst Sani, the seller moved approximately 24,000 BTC through Hyperunite and Hyperliquid before routing funds to Binance, a move that likely amplified the downward momentum [5].

The impact of high leverage in the market was further illustrated by the concentration of long positions at key levels. With many traders using leverage ratios of up to 25x, even small price movements could result in massive liquidation events. This was evident in previous market downturns, such as the 2021 Dogecoin crash and the 2023 Ethereum Shanghai upgrade, which saw billions in liquidations triggered by over-leveraged positions [3]. The current environment, characterized by elevated open interest and leveraged exposure, remains vulnerable to similar scenarios, particularly in the absence of robust risk management tools.

The aftermath of the liquidation event saw Bitcoin stabilizing at around $112,511, with open interest reaching its highest level in four days. While the immediate price decline was steep, the bounce back suggested that buyers remained active in the market. Analysts noted that the liquidation event could serve as a short-term correction, clearing excess leverage and potentially setting the stage for a new upward trend. Institutional demand, especially through ETFs and custodial products, remains strong, with the broader bull case for 2025 still intact, according to market observers [4].

As the market absorbs the effects of the weekend sell-off, traders are closely monitoring key price levels and funding rates to gauge the direction of the recovery. Altcoins like lido (LDO) and ethena (ENA) have shown resilience, continuing their upward trajectories following recent regulatory clarity. However, the broader altcoin market lags behind Bitcoin and Ether, indicating that rotation may play a role in the next phase of market development. The interplay between macroeconomic data, regulatory developments, and leveraged positioning will likely continue to shape the near-term trajectory of the cryptocurrency market [4].

Source:

[1] title1 (https://99bitcoins.com/news/bitcoin-btc/why-did-crypto-drop-heres-why-sundays-see-liquidation-hunting/)

[2] title2 (https://www.reddit.com/r/CryptoMarkets/comments/1mz7f27/250m_in_crypto_longs_liquidated_in_30_minutes_why/)

[3] title3 (https://thetradable.com/crypto/margin-liquidation-thresholds-shape-crypto-futures-trading-strategy-like-fight-club-punches)

[4] title4 (https://finance.yahoo.com/news/bitcoin-ethers-swift-spike-prompts-145927049.html)

[5] title5 (https://www.mitrade.com/insights/news/live-news/article-3-1065908-20250825)