Why did the code fall? On Sunday, August 24, 2025, Bitcoin plunged from $114,700 to $110,600 in minutes, causing $500 million in liquidation, wiping out its leveraged long position. Sales pressure also felt strong for Ethereum and Solana.

The sale reflected macro horror, profit acquisition and slower ETFs, but thin weekend liquidity increased volatility. Sunday will be the main target of whale-driven liquidation hunts, leveraging stop loss clusters and over-traders.

(sauce – tradingView.com))

Why Crypto dropped: slowing down macros, profits, ETFs

The crash on August 24th was a complete storm of macro uncertainty, technical weakness and ETF momentum of decline. It surprised the expected US inflation and surprising markets of PPI data, sparking risk-off sentiment after previous Fed optimism.

Investors were priced for interest rate cuts earlier, but Powell’s Jackson Hole’s remarks gave way to new doubts, Global cell off. Still, Bitcoin is considered a risky asset. The first wave of bearish attacks.

Bitcoin has been caught up in a perfect storm today, not just “to make a profit.” Here’s a nice breakdown of why the 1-hour candle on August 24th went from ~$117,000 to a knife to sub-$112K.

1) Jackson Hole Macro Jitter
Traders prior to Powell’s comments on Jackson Hole… pic.twitter.com/fdqparoq82

– Crypto Dad (@cryptodad_ddc) August 24, 2025

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At the same time, Bitcoin went above $124,000 in the first half of August, causing a wave of profitability. Long-term holders have secured profits, but intraday failures are below key support like $113K, which set a cascade of stop triggers. Open interest in futures has neared record highs, driving a chain reaction of liquidation. A new addition to the 5K $5K ATH, Ethereum also slipped over 2%.

WTF is happening. pic.twitter.com/aedypvnqo9

– Byzantine General (@byzgeneral) August 24, 2025

When fuel was added to the fire, the ETF inflow was stagnant. BTC ▼-2.93% and ETH ▼-3.79% Spot products showing spills.

It throttled fresh demand when emotions were changing. Historically, August has been one of Crypto’s weakest months, falling over the last 12 years, with only regulatory headwinds piling up. These factors formed the pressure cooker that opened the sale on Sunday.

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Expert explanation: Why is Sunday Prime for liquid hunting?

Sunday is notorious in the crypto world for its brutal liquidation hunt. Unlike weekdays, orders will fade over weekends as institutional activities maintain market liquidity. With fewer players, it’s easier for a large owner, “whales” to move prices strategically.

With almost all efforts, the whales send prices to key clusters of leveraged liquidation stop areas, forcing vending or purchasing. Often this creates an explosive, cascade price effect, and normal users are adored.

It could be a low capacity Sunday mandatory liquidation event. The longs these days have been completely washed away.

But if this sale was manifested by Monday morning, this is one level of low plan (if it comes): https://t.co/whwidanl1g pic.twitter.com/2ohp9joilj

– Patrick H. | cryptelligencex (@cryptelligencex) August 24, 2025

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This strategy thrives as retailers chase weekend price action. Grinding slowly and high will seduce them into an over-increasing long, then a sharply engineered dump wipes them off.

For example, the early August low was nearly $111,900, serving as a magnet, where fluidity was clustered. 25x leverage is common on platforms such as Binance, and even small swings trigger cascade clearing. Previous events have erased over $2 billion in just 24 hours.

Sunday is particularly appealing as it “resets” leverage before Monday’s institutional flow. The whale scoops cheap coins after the weak hands are washed away and sets a higher price on bullish cycles. It’s painful, but this weekend there was a repeated wick and rebound cycle.

For veteran traders, it’s not about panic, they realize that Sunday dumps are often Monday discounts.

What’s coming next for Bitcoin and Altcoin?

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Despite the weekend’s chaos, the foundations of long-term cryptography remain bullish. Bitcoin closed its weekly candles at around $113,000, leaving behind a long, underneath core that was historically an inverted signal.

This suggests that while short-term pain was stabbed, the buyer quickly retreated. Spot and derivative volumes fell 6-9%, but Flash cleared the excess leverage it has accumulated over the past few weeks.

The relative resilience of Ethereum and Solana also highlighted the shift. Altcoins only dropped slightly compared to the majors, suggesting that the turn could support the overall market strength. Bitcoin’s advantage, which slips between 57.9%, confirmed this trend.

The recovery story remains intact for ETF flows that are expected to be stable and institutional players waiting for macro clarity.

(Source – tradingView.com)

The external influence from Trump’s tariff adjustments to speculation about FBI sales of additional noise from seized Bitcoin did not halt long-term adoption. Institutional demand remains robust beneath the surface, primarily through ETFs and storage products.

Historic cycles show that liquidation-driven weekends often lead to strong runs. In the short term, traders should expect CHOPs to be fueled by macro data releases and regulations. However, the larger bull case for 2025, with the demand and adoption of ETFs, is still firmly on track.

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