Why did crypto drop? On Sunday, August 24, 2025, Bitcoin plummeted from $114,700 to $110,600 in a matter of minutes, triggering $500M in liquidations and wiping out leverage lengthy positions. Ethereum and Solana additionally felt heavy promoting stress.
The sell-off mirrored macro fears, profit-taking, and ETF slowdown, whereas skinny weekend liquidity magnified volatility. Sundays usually turn into prime targets for whale-driven liquidation searching, exploiting stop-loss clusters and overleveraged merchants.
(Supply – Tradingview.com)
Why Did Crypto Drop: Macros, Revenue-Taking, and ETF Slowdowns
The August 24 crash was an ideal storm of macro uncertainty, technical weak point, and fading ETF momentum. Hotter-than-expected U.S. inflation and PPI information spooked markets, sparking risk-off sentiment after earlier Fed optimism.
Buyers had priced in price cuts sooner, however Powell’s Jackson Gap remarks gave option to contemporary doubts, resulting in world sell-offs. Nonetheless, Bitcoin is seen as a danger asset and is on the entrance traces of the first waves of bearish assaults.
Bitcoin didn’t simply “take income” at this time—it obtained caught in an ideal storm. Right here’s the clear breakdown of why the 1‑hour candle on Aug 24 knifed from ~$117K to sub‑$112K 🩸📉
1) Macro jitters from Jackson HoleTraders have been de‑risking forward of Powell’s Jackson Gap remarks, a… pic.twitter.com/fdQParOq82
— Crypto Dad (@CryptoDad_DDC) August 24, 2025
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On the similar time, Bitcoin’s push above $124K earlier in August triggered waves of profit-taking. Lengthy-term holders secured good points, whereas intraday breakdowns beneath key assist like $113K set off a cascade of stop-loss triggers. Futures open curiosity was close to file highs, fueling a series response of liquidations. Contemporary off its $5K ATH, Ethereum additionally slipped over 2%.
Wtf is occurring. pic.twitter.com/aEdYpvNQO9
— Byzantine Common (@ByzGeneral) August 24, 2025
Including gas to the fireplace, ETF inflows stagnated, with 
BTC ▼-2.93% and 
ETH ▼-3.79% spot merchandise even displaying outflow.
That capped contemporary demand at a time when sentiment was shifting. Traditionally, August is amongst crypto’s weakest months, with declines in eight of the final 12 years, and regulatory headwinds solely piled on. These components shaped the stress cooker that cracked open Sunday’s sell-off.
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Professional Explains: Why Are Sundays Prime For Liquidity Searching?
Sundays have turn into infamous in crypto circles for brutal liquidation hunts. Not like weekdays, when institutional exercise retains the market liquid, the order books are skinny on weekends. With fewer gamers, it’s simpler for big holders, “whales,” to maneuver costs strategically.
With little effort, whales handle to ship the worth to important clusters of leveraged liquidation cease areas, forcing automated sells or buys. Usually, this creates an explosive and cascading worth impact, leaving common customers in awe.
It is perhaps a compelled liquidation occasion on a low-volume Sunday. Latest longs have been flushed fully.
However ought to this sell-off manifest by way of Monday morning, that is my plan for one stage decrease (if it comes): https://t.co/WHWidANL1G pic.twitter.com/2ohp9jOIlj
— Patric H. | CryptelligenceX (@CryptelligenceX) August 24, 2025
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This technique thrives when retail merchants chase weekend worth motion. A gradual, larger grind lures them into overleveraged longs, after which a pointy, engineered dump wipes them out.
For instance, early August lows close to $111,900 acted as magnets, the place liquidity clustered. With 25x leverage frequent on platforms like Binance, even small swings set off cascading liquidations. Some previous occasions have seen over $2Bn erased in simply 24 hours.
Sundays are particularly enticing as a result of they “reset” leverage earlier than Monday’s institutional move. Whales scoop low-cost cash after weak palms are flushed out, establishing larger worth runs in a bull cycle. Whereas painful, this weekend wicks and rebounds cycle has performed out repeatedly.
For seasoned merchants, it’s much less about panic and extra about alternative, recognizing that Sunday dumps are sometimes Monday reductions.
What Comes Subsequent for Bitcoin and Altcoins?
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Regardless of the weekend chaos, long-term crypto fundamentals stay bullish. Bitcoin closed the weekly candle at round $113K, leaving a protracted decrease wick, which was traditionally a reversal sign.
This means that whereas short-term ache stung, consumers shortly stepped again in. Spot and derivatives volumes dipped 6-9%, however the flush cleared extra leverage that had constructed up in prior weeks.
Ethereum and Solana’s relative resilience additionally underscored a shift. Altcoins solely fell barely in comparison with majors, hinting that rotation could assist general market energy. Bitcoin’s dominance, slipping between 57.9%, confirmed this development.
A restoration narrative stays intact with ETF flows anticipated to stabilize and institutional gamers awaiting macro readability.
(Supply – TradingView.com)
Exterior influences starting from Trump’s tariff adjustment to hypothesis about FBI gross sales of seized Bitcoin added noise however didn’t dent long-term adoption. Institutional demand stays strong beneath the floor, primarily by way of ETFs and custodial merchandise.
Historic cycles present that liquidation-driven weekends usually precede robust runs larger. Within the quick time period ,merchants ought to anticipate chop, fueled by macro information releases and laws. However the larger 2025 bull case, powered by ETF demand and adoption, nonetheless appears to be like firmly on monitor.
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Key Takeaways
Why did crypto drop?
From hypothesis to revenue taking.
Is crypto nonetheless on monitor to new highs?
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