#MarketTurbulence Bitcoin decline tied to inflation shocks and liquidations

Bitcoin plunged below $118,000 after unsettling U.S. inflation data and a wave of over $1 billion in liquidations rattled the market.  

• Mass liquidations across the crypto space

Bitcoin, Ethereum, and Dogecoin saw a sharp retreat, with $941 million in total liquidations following a bullish stretch. 

• Macro data and central bank rate cut expectations

Unexpected inflation readings—from the Producer Price Index, in particular—derailed hopes for aggressive rate cuts, fueling volatility across digital assets.  

• On August 14, crypto markets lost $860 million, with Bitcoin falling nearly 5% from a recent peak above $123,500 to around $117,000. Ethereum, XRP, and Dogecoin also took hits—Ethereum traders alone suffered $348.9 million in liquidations. 

• On August 15, Bitcoin dropped 2–3.8%, slipping below $119,000 amid renewed inflation worries. Meme coins like PEPE and Fartcoin crashed over 10%, while altcoin SKALE bucked the trend with a 48% gain. 

• Altcoin-specific moves

Hedera (HBAR) saw intraday volatility—rallying sharply only to retreat—amid notable ETF-related activity and institutional interest. 

• Binance signals potential sell-off

A surge in Bitcoin deposits at Binance triggered concerns that significant selling pressure may be on the horizon. 

• Institutional inflows offset some downside

Despite the turbulence, Ethereum ETFs attracted $729 million in inflows, showcasing that institutional demand remains robust even amid market fragility. 

• Market commentary

Analysts largely view recent turbulence as a short-term correction, not a reversal of the broader bullish trend. Institutional adoption, regulatory clarity, and long-term fundamentals remain supportive, suggesting current dips may represent buying opportunities.