Share this article
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.
What to know:
- Bitcoin’s pullback from record highs to $118,000 rippled through the crypto market, triggering over $1 billion liquidations across digital assets.
- The sell-off marks a healthy profit-taking, not a reversal, as Fed rate-cut hopes and ETF inflows still support bullish momentum, analysts said.
- Rising core inflation data and stretched valuations pose near-term risks, but institutional demand for crypto remains strong.
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%. lost 4.6% with ether outperforming by edging down 0.7%.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
"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 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
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
XRP Faces Downside Risk as Social Sentiment Turns Wildly Negative
The turn in crowd mood comes after a two-month slide of roughly 31%, leaving the token vulnerable to further downside if risk appetite weakens across majors.
What to know:
- XRP's price approached the $2 mark as social sentiment around the token turned sharply negative, according to Santiment data.
- The token has experienced a 31% decline over two months, making it vulnerable to further losses if market risk appetite weakens.
- Santiment's sentiment model indicates XRP is in a 'fear zone,' where negative commentary significantly outweighs positive talk, potentially influencing market positioning.
Top Stories
