Bitcoin News Today: Global Crypto Market Loses $100 Billion After Surging U.S. Inflation Triggers Selloff
Over $100 billion in market capitalization was wiped from the global cryptocurrency market in a 24-hour span as the sector faced a sudden selloff in late July and early August 2025. The downturn was triggered by a hotter-than-expected U.S. inflation report, which heightened volatility across key crypto assets and led to broader financial market corrections [1][2]. Bitcoin, which had reached a record high of $123,400 earlier in the week, tumbled to under $118,000 within days, with Ethereum and other major altcoins also experiencing sharp declines [3].The rapid price action triggered significant liquidations in crypto derivatives markets, with over $1 billion in leveraged positions being closed in a 24-hour period, most of which were long positions [4]. This selloff particularly affected derivatives traders and led to a wave of panic among leveraged participants. The decline in Bitcoin also pushed trading volume to $107 billion, as investors scrambled to reassess their exposure [2].Despite the turbulence, institutional players appeared to be taking a different approach. BlackRock’s Bitcoin and Ether ETFs purchased over $1 billion in assets in a single day as prices dropped more than 5%, signaling a strategic move to capitalize on the selloff [7]. Analysts have generally viewed the drop as a healthy correction rather than a crash, emphasizing that the liquidations reflect normal profit-taking after months of strong gains [6].Retail traders, however, were more shaken. Reports indicated signs of buyer exhaustion among retail participants following weeks of aggressive price surges, raising concerns about market sentiment and potential fatigue [8]. Yet, continued inflows into ETFs and the absence of significant macroeconomic shifts suggest that the underlying fundamentals of the crypto market remain stable.The selloff was also influenced by broader economic indicators. A surprise increase in the U.S. producer price index (PPI) reinforced expectations of prolonged high interest rates, contributing to a broader market pullback [9]. This event highlighted the growing sensitivity of the crypto market to macroeconomic data, mirroring patterns seen in traditional financial markets.While the short-term outlook remains volatile, analysts emphasize that the market is still in an early phase of institutional adoption. A single sharp correction is unlikely to derail major long-term trends, especially as some tokens have shown resilience amid the broader selloff [5]. The event has underscored both the inherent risks and the potential for continued growth in the crypto space.[1] Bitcoin has plummeted after soaring to a fresh all-time high this week, with the combined crypto market losing well over $100 billion despite Elon Musk quietly... See more, Forbes, https://www.forbes.com/sites/digital-assets/2025/08/15/treasury-secretary-reveals-us-bitcoin-surprise-triggering-price-shockwaves/[2] Crypto markets fell $133 billion after hot inflation data triggered over $1 billion in liquidations, though analysts view it as healthy profit-taking. Trader... See more, CoinCentral, https://coincentral.com/why-is-crypto-down-today-heres-what-happened-4/[3] Bitcoin's price unexpectedly dropped from over $121,000 to under $118,000, causing significant liquidations nearing $1 billion and impacting over 200,000... See more, Reddit, https://www.reddit.com/r/CryptoCurrency/comments/1mpzsj5/bitcoin_suddenly_crashes_under_118k_as/[4] Bitcoin has pulled back sharply from its fresh all-time high of $123,400, dropping to $117,400 on Thursday. The correction took place as a hotter-than-expected... See more, CoinGlass, https://www.coinglass.com/ru/news/534145[5] Bitcoin has fallen by more than 3% to around $119K, while over $860 million in long positions were liquidated in 24 hours. Yet, some altcoins showed resilience... See more, 99Bitcoins, https://99bitcoins.com/news/altcoins/why-did-crypto-crash-today-xrp-and-xlm-falling-eth-sol-ada-skyrocketing/[6] Bitcoin's drop to $118,000 led to over $1 billion in liquidations across the crypto market, viewed by analysts as a healthy profit-taking phase rather than a... See more, The, https://m.economictimes.com/crypto-news-today-live-14-aug-2025/liveblog/123288029.cms[7] Key points: BlackRock's Bitcoin and Ether ETFs bought over $1 billion on Thursday while prices tanked 5% or more. Institutions are interested in “buying the dip... See more, CoinGlass, https://www.coinglass.com/ru/news/534794[9] U.S. July PPI Surges, Triggers Crypto Market Sell-Off: Best Crypto To Buy During This Dip? Let's try to answer why the crypto market is down today. See more, XT.com, https://www.xt.com/en/blog/community-news/2025-08-15T14:00:00.000Z
Comments (0)