Bitcoin Falls to $115K After Record High — Crypto Market Faces $500M Liquidation Wave

Bitcoin Falls to $115K After Record High 

The crypto world had a shaky start to the week as Bitcoin (BTC) slipped back to around $115,000, just days after touching a fresh all-time high near $124,500. The sell-off came as global economic worries flared up, sparking a massive liquidation wave worth more than $500 million in the last 24 hours.

• Bitcoin dropped roughly 2% to $115,255 after briefly hitting $114,706 earlier today.
• Ethereum (ETH) had an even harder fall, sliding 4% to $4,283 after coming close to breaking its record near $4,800 last week.

The sharp move followed hotter-than-expected July inflation data, which raised doubts about whether the Federal Reserve will cut interest rates in September. This uncertainty pushed many traders to lock in profits, triggering a cascade of liquidations and forcing prices even lower.

$552M in Forced Selling Hits Crypto

According to Coin Metrics, more than 131,000 traders were liquidated in the past 24 hours. That includes:

• $123M from long Bitcoin positions
• $178M from long Ethereum positions

In simple terms, when traders borrow money to bet on rising prices and the market suddenly drops, exchanges force-sell their positions—amplifying the crash.

Extra Pressure From Policy News

Adding to the market’s nerves, U.S. Treasury Secretary Scott Bessent confirmed that the government’s strategic Bitcoin reserve will rely only on coins seized or forfeited to the government, rather than fresh purchases. That dampened hopes for stronger state-backed crypto support.

Stocks & Altcoins Also Felt The Heat

The broader crypto market slipped too:

• The CoinDesk 20 index dropped 3.7%
• Crypto-related stocks slid premarket — Bitmine Immersion fell 6%, SharpLink Gaming lost 3%
• Newly listed Bullish exchange dipped 3% after its Wall Street debut last week

What’s Next for Crypto?

All eyes are now on the Federal Reserve’s Jackson Hole symposium later this week for signals on future U.S. monetary policy, plus Thursday jobless claims data. Traders are cautious, especially since August often tends to be a weak month for risk assets.

Still, many analysts believe this pullback is not a “crisis,” but rather a healthy cooldown after four consecutive Bitcoin highs this year. Crypto ETFs also remain a major support, recording billions in inflows, especially for ETH funds, which just marked their 14th straight week of gains.

Bottom Line

The hype around institutional adoption and ETF inflows is keeping long-term sentiment bullish, even if short-term jitters cause heavy selling. Bitcoin may have taken a breather, but the bigger race isn’t over yet.

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