|
Getting your Trinity Audio player ready...
|
- Nearly $1B in crypto liquidations hit long traders in 24 hours.
- Ethereum led losses with $342M, followed by Bitcoin at $162M.
- Mixed US Treasury signals caused short-term volatility but may ease future selling pressure.
The cryptocurrency market faced a sharp downturn, with nearly $1 billion in liquidations within 24 hours, following mixed messages from US Treasury Secretary Scott Bessent regarding the government’s Bitcoin strategy. The sell-off primarily affected long traders, highlighting the market’s sensitivity to policy updates from high-level officials.
Ethereum Leads the Liquidation Wave
Data from Coinglass shows total liquidations reached approximately $961 million in a single day, with $821 million stemming from long positions. Ethereum-related contracts bore the brunt, totaling $342 million in losses, while Bitcoin liquidations accounted for $162 million. Other altcoins were also impacted, with Solana and XRP seeing $61 million and $55 million in liquidations, respectively.
Analysts note that Ethereum’s vulnerability was amplified by its recent surge toward all-time highs, making the market particularly reactive to negative signals.
Mixed Messages from the Treasury
The sell-off followed Bessent’s initial confirmation that the US Treasury would not purchase additional Bitcoin for its Strategic Reserve. Instead, the reserve will grow primarily through confiscated assets from criminal and regulatory actions. He also announced a halt to all Bitcoin sales, reversing previous administrations’ practices of selling billions in BTC—potentially easing long-term selling pressure.
Bitcoin that has been finally forfeited to the federal government will be the foundation of the Strategic Bitcoin Reserve that President Trump established in his March Executive Order.
— Treasury Secretary Scott Bessent (@SecScottBessent) August 14, 2025
In addition, Treasury is committed to exploring budget-neutral pathways to acquire more…
However, Bessent later clarified that the Treasury continues to explore budget-neutral strategies for expanding the reserve. This approach aligns with former President Trump’s 2025 executive order to establish the United States as a “Bitcoin superpower,” creating uncertainty that contributed to the day’s volatility.
Also Read: Onchain Indicators Every Bitcoin Trader Must Watch Before Betting on a Pullback
Market Implications
Bitcoin briefly fell below $120,000 after earlier reaching $124,000, illustrating the market’s immediate reaction to policy announcements. With the US holding one of the largest Bitcoin stockpiles globally, future supply-side pressures could be reduced, potentially supporting BTC prices in the medium term.
The events underscore the crypto market’s sensitivity to high-level government statements and strategic decisions. Investors and traders should be prepared for volatility, especially when policy directions remain ambiguous or subject to rapid clarification.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
