Bitcoin drops to $115,000 after record high as macro worries trigger sell-off

Bitcoin fell 2% to $115,255.70 after reaching a new record last week at $124,496, its fourth high this year.

At its lowest point, it traded at $114,706. Ether dropped 4% to $4,283.15, after coming close to its $4,800 record last week. Both currencies retreated following higher-than-expected July wholesale inflation data, which raised doubts about a possible Federal Reserve rate cut in September.

Profit-taking by investors triggered a wave of liquidations.

According to Coin Glass, sales from 133,643 traders in the past 24 hours totalled $576.35 million. That included about $124 million in long bitcoin liquidations and $184 million in long ether liquidations. These liquidations occur when traders are forced to sell assets at market price to cover debts, pushing prices lower.

Treasury Secretary Scott Bessent added to investor concerns, clarifying Thursday that the strategic bitcoin reserve created by President Donald Trump in March will be limited to bitcoin forfeited to the federal government, as officials look into “budget-neutral pathways to acquire more bitcoin.”

The broader market also declined. The CoinDesk 20 index, which tracks top cryptocurrencies, dropped 3.7%. Crypto-related stocks were hit as well: Bitmine Immersion fell 8%, newly listed exchange Bullish dropped 7%, while Circle and Coinbase both slipped 2%.

This week, investors are watching the Federal Reserve’s annual economic symposium in Jackson Hole, Wyoming, for policy signals, as well as Thursday’s jobless claims data.

Last week’s climb in bitcoin and ether surprised traders who had expected an August slowdown due to economic uncertainty. Historically, August has been a weak trading month for many markets, and attention is now shifting to the Fed’s September meeting.

Many analysts view the current pullbacks as a natural pause rather than a crisis, with ongoing support from crypto ETFs and companies steadily accumulating bitcoin and ether.

While bitcoin and ether ETFs recorded outflows on Friday, the week closed with strong inflows: $547 million for bitcoin funds and $2.9 billion for ether funds. For ETH funds, it was both a record week and the 14th straight week of inflows.

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