According to sources, the Crypto liquidations August wave saw billions vanish from the market in a matter of hours. Over $1 billion in borrowed crypto trades were erased following the latest U.S. economic data release. That update unsettled investors, suggesting the Federal Reserve could delay lowering interest rates.
The downturn kicked in just after $BTC reached a record high above $123,500, but the surge didn’t last; prices tumbled quickly, pulling other leading cryptocurrencies down as well.
What Triggered This Sudden Liquidation?
The market slide took hold soon after $BTC hit a record high above $123,500. In just a few hours, bullish traders saw about $866 million vanish, with most of the hit taken by those holding long positions.
Analysts say that when the Producer Price Index came out, it marked the moment traders started selling off their investments in major cryptocurrencies.
Which Cryptocurrencies Were Hit the Hardest?
Ether traders took the hardest hit, with $348.9 million cleared in the Crypto liquidations August wave. Bitcoin losses followed at $177.1 million, while Solana saw $64.2 million, XRP $58.8 million, and Dogecoin $35.8 million wiped out.
Overall, long positions suffered more than six times the losses of shorts, showing how heavily the sell-off targeted bullish bets.
| Key Metric | Value |
| Total Liquidations (August 2025) | $860 million |
| Largest Cryptocurrency Hit | Ethereum ($ETH) |
| Bitcoin Liquidations | $177.1 million |
| Other Cryptos Impacted | Solana: $64.2M, XRP: $58.8M, DOGE: $35.8M |
| Percentage Loss on Long Positions | Over 6 times vs. shorts |
| Leading Exchange in Liquidations | Bybit |
| Other Key Exchanges | Binance ($249.9M), OKX ($125.1M) |
| Bitcoin Price Peak | Above $123,500 |
How Did Exchanges Respond?
Bybit took the biggest hit in a single day, with $421.9 million in liquidations, over 92% of them from long positions. Binance came next with $249.9 million, followed by OKX at $125.1 million.
The most notable individual loss was an ETH-USDT perpetual swap worth $6.25 million on OKX, one of the sharpest single-position losses during the Crypto liquidations August wave.
What Are Analysts Saying About the Market Outlook?
Jeff Mei, COO at BTSE, said the inflation report slowed down what had been a strong crypto rally, and that prices might not move much until the Federal Reserve gives better news.
Nick Ruck from LVRG Research said the drop showed how closely crypto now reacts to global money conditions. Both believe the main reasons for the bull market are still in place, even after the Crypto liquidation in August.
Is This a Temporary Setback or a Trend Shift?
Traders are being careful for now. They’re watching U.S. jobs data coming in early September, which could affect what the Fed does next.
Some think this drop is just a small pause in a bigger upward trend, but others say high inflation could cause more Crypto liquidation in the August events if traders keep using too much leverage.
Conclusion
Based on the latest research, the Crypto liquidations August drop shows how sensitive the crypto market is to big economic news and heavy use of leverage. Losing over $1 billion in just one day is a reminder of the dangers of chasing fast price surges.
The next few weeks, especially new U.S. economic data, will play a big role in deciding if the market bounces back or faces more liquidation rounds.
Summary
The Crypto liquidations August wave erased over $1 billion in leveraged positions within 24 hours after U.S. inflation data came in higher than expected.
$BTC fell from a record high above $123,500, with $866 million in bullish trades wiped out. Ether saw the biggest hit at $348.9 million, followed by Bitcoin, Solana, XRP, and Dogecoin.
Bybit led exchange losses at $421.9 million. Analysts warn that high inflation and heavy leverage could trigger more sell-offs despite long-term bullish sentiment.
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FAQs
1. What triggered the crypto liquidations August 2025?
Hotter-than-expected U.S. inflation data and fears of delayed Fed rate cuts.
2. How much was lost in total?
Over $860 million in 24 hours.
3. Which coin had the biggest losses?
Ether, with $348.9 million wiped out.
4. Were long or short positions hit harder?
Longs are lost over six times more than shorts.
5. Which exchange saw the highest liquidations?
Bybit, with $421.9 million.
6. What was the largest single trade loss?
An ETH-USDT swap worth $6.25 million on OKX.
Glossary
PPI (Producer Price Index) – U.S. inflation measure that can move markets.
Perpetual Swap – A crypto derivative without an expiry date.
Liquidation – Forced closure of a trade when losses exceed collateral.
Rate Cut – Central bank action to lower interest rates.
Sources
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