- Bitcoin dropped 2% to ~$115K and Ethereum slid 4% to $4,283 as hotter inflation data sparked over $500M in forced liquidations.
- More than 133,000 traders were liquidated, with $124M in Bitcoin longs and $184M in Ethereum longs wiped out.
- Despite the pullback, crypto ETFs saw strong weekly inflows ($547M BTC, $2.9B ETH), suggesting institutions are still accumulating.
The week started on a shaky note for crypto traders as fresh macro concerns sparked over $500 million in forced long liquidations. Bitcoin, which only just set a new all-time high near $124,500 last week, slipped back to around $115,255, marking a 2% daily decline after briefly dipping below $115,000. Ethereum followed with a sharper 4% drop, sliding to $4,283 after coming close to its record high. The sell-off was triggered by hotter-than-expected wholesale inflation data for July, casting doubt on the Fed’s chances of delivering a rate cut in September.
Liquidations Amplify the Downturn
According to CoinGlass, more than 133,000 traders were caught off guard in the past 24 hours, with liquidations totaling $576 million. That figure includes roughly $124 million in long Bitcoin positions and $184 million in Ethereum longs. When leveraged bets unwind, traders are forced to sell at market price, which deepens the sell pressure and drags prices further down. Many investors also took profits after the latest rally, creating a wave of selling that fed on itself.
Macro and Market Pressure
Adding to the cautious mood, Treasury Secretary Scott Bessent clarified last week that President Trump’s new “strategic bitcoin reserve” will rely only on assets forfeited to the government, rather than new purchases. The broader market mirrored Bitcoin and Ethereum’s pullback, with the CoinDesk 20 index down 3.7%. Crypto-related stocks were hit as well, with Bitmine Immersion down 8%, Bullish falling 7% after its public debut, and Coinbase and Circle sliding around 2%.
Outlook and Investor Sentiment
Traders are now looking to the Fed’s Jackson Hole symposium later this week, alongside jobless claims data, for clearer signals on monetary policy. Historically, August has been a weak month for crypto, and many expected a pullback even before inflation headlines weighed in. Still, analysts suggest these dips may act more like cooldowns than crisis sell-offs. Crypto ETFs logged strong inflows last week—$547 million for Bitcoin and a record $2.9 billion for Ethereum—pointing to sustained institutional support despite Friday’s net outflows.
