The cryptocurrency market faced a significant setback on August 18, 2025, as Bitcoin plunged below the $115,000 mark, triggering a massive sell-off that wiped out over $500 million in leveraged positions. This sudden correction came after Bitcoin hit new record highs, leading traders and investors to reassess their positions amid growing macroeconomic uncertainty and profit-taking by major holders.
Bitcoin’s decline led to a broader crypto market drop, with major coins like Ethereum, XRP, Solana (SOL), and Dogecoin (DOGE) also suffering losses between 2.2% and 5%. The liquidation wave primarily affected leveraged long positions, highlighting the fragile market sentiment in today’s volatile environment.
Market analysts point to two key drivers behind this sharp correction:
- Profit-taking by whales and large investors is locking in gains after Bitcoin’s recent surge to all-time highs.
- Increasing concerns over inflation and the Federal Reserve’s rate policies have dampened risk appetite across global markets, including digital assets.
Despite this downturn, institutional interest in cryptocurrencies like Bitcoin and Ethereum remains notable, signalling continued confidence in the long-term prospects of the crypto market.
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