Crypto Slide Spurs $1B Leverage Flush, But It’s a Healthy Pullback, Analysts Say
Market strategists said the crypto rally’s broader outlook remains positive despite the largest long liquidations since early August.
Aug 14, 2025, 4:06 p.m.
Crypto prices slipped Thursday after an unexpectedly hot PPI inflation print, but analysts said it’s just a pullback within the rally.
The CoinDesk 20 Index of largest cryptocurrencies fell 2.1% over the past 24 hours, with bitcoin
dropping 2.3%. XRP
lost 4.6% with ether
(ETH)
outperforming by edging down 0.7%.
“The pullback is, in my view, simply a recalibration in an otherwise bullish trend,” said David Siemer, co-founder and CEO of Wave Digital Assets. “Bitcoin remains firmly entrenched as the anchor of institutional crypto strategies.”
Bitcoin’s (BTC) rush to new all-time highs over $124,000 was fueled by rising expectations for Federal Reserve interest-rate cuts in September coupled with surging ETF inflows and institutional adoption.
The Thursday reversal to as low as $118,000 was “equally normal,” he said.
“After such a sharp rally, profit-taking tends to set in, and we saw short-term traders liquidate their positions and take gains,” Siemer said. “In addition, higher-than-expected inflation data, particularly around core consumer prices, has tempered some of the Fed optimism that drove the rally.
“It’s a healthy consolidation rather than a reversal,” he concluded.
Joel Kruger, market strategist of LMAX Group shared a similar view.
“It comes as no surprise to see a round of profit taking kick in following some impressive moves in crypto markets this week,” Kruger wrote in a morning note. “But overall, the outlook remains highly constructive and dips should be well supported.”
Looking ahead, key risks for crypto prices are potential overextension of valuations, geopolitical turbulence or economic data that could recalibrate Fed projections, Kruger added.
Still, late bulls were punished for their exuberance. The shakeout triggered a massive leverage flush, liquidating over $1 billion in leveraged trading positions across all crypto derivatives over the past 24 hours, mostly longs betting on rising prices, CoinGlass data shows.
That’s the largest long liquidation since at least the late July–early August plunge. That time, BTC dipped below $112,000 and many altcoins saw double-digit pullbacks, eventually carving out the local bottom for most of the digital asset market.
“The ‘I guess opening a 50x long after a 7-day 50% move was not the best idea’ type of shakeout here,” well-followed trader Bob Loukas said in an X post.
Read more: Bitcoin Hits $124K Record as 4 Tailwinds Align: Crypto Daybook Americas
Helene Braun
Helene is a New York-based markets reporter at CoinDesk, covering the latest news from Wall Street, the rise of the spot bitcoin exchange-traded funds and updates on crypto markets. She is a graduate of New York University’s business and economic reporting program and has appeared on CBS News, YahooFinance and Nasdaq TradeTalks. She holds BTC and ETH.
Krisztian Sandor
Krisztian Sandor is a U.S. markets reporter focusing on stablecoins, tokenization, real-world assets. He graduated from New York University’s business and economic reporting program before joining CoinDesk. He holds BTC, SOL and ETH.
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Digital Asset Treasury Firms Plunge as Bitcoin Tumbles Below $117K, ETH Slides to $4.4K
The crypto rally continues to quickly reverse course just two days after bitcoin surged to a new record and ether soared to a five-year high.
What to know:
- Digital asset treasury firms experienced significant sell-offs as the crypto rally lost momentum.
- Strategy (MSTR) fell 3%, down 33% from its November 2024 high. Ether-focused BMNR, SBET posted bigger losses.
- The move coincided with bitcoin and ether sharply reversing from big moves higher less than two days ago.
