• A massive wave of liquidations hit cryptocurrency markets with over $1.4 billion in forced liquidations (from August 6 to 11, 2025)
• Liquidations peaked at $452 million on August 10 and $439 million on August 11
• The value of Bitcoin surpassed $122,000 while Ethereum rose above $4,300 after declining at the beginning of August
• Ethereum breaking the $4,000 level caused $105 million in short positions to be liquidated on August 9
Key influencing factors
• The initial pressure to sell due to the new U.S. tariffs quickly reversed thanks to strong inflows into ETFs
• Changes in U.S. SEC policy: dissolution of the enforcement unit, creation of a dedicated cryptocurrency task force, and clarification of staking rules
• Trump's executive order allowing the use of cryptocurrencies in retirement plans (401(k)s) boosted individual investor participation
• Combined factors created a volatile environment that forced both long and short positions to close
Trading-related indications
• Bitcoin rising above $122,000 indicates the possibility of testing higher historical levels
• Ethereum reaching $4,300 represents a new support level attracting institutional interest
• The retreat of short positions ($216 million liquidated on August 7) indicates a reduction in negative sentiment
• Risk management is crucial during this period of high volatility
• Investment opportunities are emerging in staking and custody projects compliant with the new regulatory framework
