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The cryptocurrency market opened the week under heavy pressure, with Bitcoin and Ethereum prices retreating sharply from recent tangoes with all-time highs.
With institutional forces now in the driving seat, the immediate trigger came from hotter-than-expected U.S. wholesale inflation data.
July’s Producer Price Index rose 0.5%, beating forecasts of 0.3% and raising doubts over a September Federal Reserve rate cut.
Retail sales also surprised to the upside at 1.2%, reinforcing the idea that the economy is running hotter than policymakers expected.
Markets had been pricing a near-certainty of Fed easing next month. Those odds have dropped from 98% to 84%, sparking a risk-off rotation away from speculative assets.
Higher rates diminish the appeal of crypto relative to fixed-income yields, and the macro repricing was swift.
Are Market Makers Shaking the Chart? $576M in Leveraged Longs Liquidated
(Source)
The macro shocks also collided with aggressive positioning. According to CoinGlass, over $576M in leveraged long positions were liquidated in the past 24 hours, including $124M in Bitcoin and $184 million in Ethereum.
The consequence? Roughly 133,000 traders were forced out of positions, amplifying the selloff as assets were dumped at the market.
(Source)
Bitcoin, which had set its fourth all-time high of 2025 last week at $124,496, plunged as low as $114,706 before stabilizing near $116,000.
Ether, just shy of retaking its 2021 peak above $4,800 last week, slipped 3% to $4,325.
Both assets remain up strongly year-to-date, but near-term technical momentum has flipped defensive.
Where Does The Crypto Market Go From Here? Policy Disappointment, ETFs and Stocks Reflect Risk-Off
Comments from Treasury Secretary Scott Bessent, who clarified that President Trump’s “strategic Bitcoin reserve” will be limited to coins forfeited to the federal government, added fuel to bearish sentiment.
The announcement undercut hopes of aggressive sovereign-level BTC accumulation, tempering one of the market’s more bullish policy narratives.
The broader CoinDesk 20 index slid 3.7%, with crypto-exposed equities also under strain. Newly listed exchange Bullish fell 7%, Bitmine Immersion lost 8%, while Coinbase and Circle each declined 2%.
ETF flows showed net outflows Friday, though both Bitcoin and Ethereum funds still logged multi-billion inflows for the week.
DISCOVER: Top Solana Meme Coins to Buy in 2025
So, Is Crypto Crashing? It’s Not a Crisis, But a Cooldown
Analysts emphasize the pullback is not a structural breakdown. After multiple record highs in 2025, the August correction fits a seasonal pattern of thin liquidity and macro-driven repricing.
With the Fed’s Jackson Hole Conference this week and jobless claims data on Thursday, traders should expect elevated volatility.
Sustained ETF inflows and corporate accumulation remain a cushion beneath the market, but for now, “Is crypto crashing?” reflects a sharp yet healthy reset in overheated conditions.
DISCOVER: Top 20 Crypto to Buy in 2025
What’s The Play? From Bitcoin’s Consolidation to Bitcoin’s Next Layer 2
Bitcoin may be wrestling with resistance, but the real action is happening underneath the surface. While the market debates Fed policy and macro headwinds, whales are quietly positioning into Bitcoin Hyper (HYPER), a new Layer 2 that brings Solana-level speed to the Bitcoin network.
HYPER has already crossed $10M in presale funding, with whale buys as high as $150,000 hitting the chain. At just $0.0127, early investors see a chance to capture the next wave of Bitcoin adoption before listing.
What makes it different? Unlike other Layer 2s, Bitcoin Hyper runs Solana programs natively through its rollup architecture. That means DeFi, payments, NFTs, and even gaming can run on Bitcoin’s security layer at Solana speed.
Think of it as Bitcoin’s missing app layer, programmable, scalable, and finally practical for everyday use.
And the incentives are already live. HYPER’s dynamic staking yield of 110% has whales locking in allocations ahead of the next presale price hike.
With the Bitcoin payments market projected at $3.7Tn by 2031, HYPER doesn’t need to capture more than a sliver to deliver outsized returns.
The presale timer is ticking, and allocations are moving fast. To secure tokens before the next stage price increase, head to the Bitcoin Hyper website and buy directly with ETH, SOL, USDT, or card.
DISCOVER: The 12+ Hottest Crypto Presales to Buy Right Now
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