Bitcoin Plummets to $115,000 After Setting New Record Amid Macro Economic Fears
August 18, 2025 — Bitcoin experienced a sharp decline Monday, slipping to $115,000 after recently hitting its latest all-time high near $125,000 last week. This drop comes amid mounting macroeconomic concerns that have triggered a wave of liquidations across the cryptocurrency market.
After reaching a peak of $124,496 last week—the fourth record price this year—Bitcoin declined by approximately 1.1%, trading around $116,395 before falling as low as $114,706 earlier Monday. Similarly, Ethereum also faced pressure, declining 2.5% to about $4,354 after nearing its recent peak of roughly $4,800. Heightened inflation data released in July, which exceeded expectations for wholesale prices, has caused traders to question whether the Federal Reserve will proceed with a rate cut during the upcoming September policy meeting. This uncertainty dampened investor sentiment and weakened momentum for institutional adoption narratives that had supported strong crypto performances earlier in the summer.
According to CoinGlass data, the past 24 hours witnessed over $530 million in liquidations caused by forced selling of long positions. Approximately $124 million involved Bitcoin liquidations while Ethereum long positions accounted for about $184 million. These forced sell-offs pressure prices lower as traders are compelled to close positions to cover losses.
Compounding investor disappointment were comments by Treasury Secretary Scott Bessent, who clarified that the strategic Bitcoin reserve established by the Trump administration earlier this year will be limited to bitcoins forfeited to the federal government. The administration continues to explore options to acquire bitcoin without impacting the federal budget.
The broader crypto market reflected similar weakness. The CoinDesk 20 index, which tracks major cryptocurrencies, declined by 1.2%. Crypto-related equities fared unevenly, with Bitmine Immersion shares falling 5.4%. Meanwhile, recently public crypto exchange Bullish dropped 8.9%. In contrast, shares of Coinbase and Galaxy Digital edged higher by 1.0% and 2.2%, respectively, as investors monitored market volatility.
Looking ahead, investors are keenly focused on the Federal Reserve’s annual economic symposium in Jackson Hole, Wyoming, scheduled for later this week. The event is expected to provide critical insight into the Fed’s potential interest rate decisions for the remainder of 2025. Additionally, jobless claims data released on Thursday will be another key economic indicator closely watched by market participants.
Despite the pullback, some analysts view this August correction as a healthy market cooldown rather than an indicator of crisis. This perspective is supported by ongoing demand from crypto ETFs and corporations aggressively accumulating Bitcoin and Ethereum. Although ETF inflows dipped on Friday, the week saw substantial inflows, with $547 million into Bitcoin ETFs and a record $2.9 billion flowing into Ethereum funds, marking the 14th consecutive week of net inflows for ETH products.
While Bitcoin hovers near flat for the month, Ethereum remains notably stronger, up approximately 15% year-to-date. Market watchers remain cautiously optimistic that the upcoming Fed meetings and economic data releases will set the tone for crypto markets heading into the fall.
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