Bitcoin has fallen after reaching a new all-time high near $125,000 last week, its fourth this year. The price of Bitcoin was recently down 1.1% at $116,394.87, after peaking at $124,496. Ether also slid, dropping 2.5% to $4,354.00. Higher-than-expected July wholesale inflation data has raised questions about a potential Federal Reserve rate cut in September, contributing to the downturn.
Investor profit-taking triggered significant liquidations across the cryptocurrency market. Data indicates that sales from 123,836 traders totalled $530.79 million over the past 24 hours, including approximately $124 million in Bitcoin liquidations and $184 million in Ether liquidations. This occurs when traders are compelled to sell assets at market prices to cover debts, further depressing prices.
Adding to investor caution, comments from Treasury Secretary Scott Bessent clarified that the strategic Bitcoin reserve established by President Trump will be limited to Bitcoin forfeited to the federal government. Among crypto-related stocks, Bitmine Immersion, a company focused on immersion cooling solutions for cryptocurrency mining, fell by 5.4%. Bullish, a cryptocurrency exchange that recently went public, was lower by 8.9%. Coinbase, a cryptocurrency exchange platform, and Galaxy Digital, a digital asset and blockchain company, saw gains of 1.0% and 2.2%, respectively.
Looking ahead, investors are closely monitoring the Fed’s annual economic symposium in Jackson Hole, Wyoming, for indications regarding future monetary policy decisions. Additionally, upcoming jobless claims data will be a key focus for crypto traders. Many analysts view the recent pullbacks as healthy corrections rather than crisis reactions, supported by crypto ETFs and companies focused on accumulating Bitcoin and Ether. While ETFs tracking Bitcoin and Ether experienced net outflows on Friday, they still recorded substantial net inflows for the week.
