Bitcoin triggers $860M in short liquidations in one hour

Bitcoin’s sprint past $123,500 to a new all-time high was supposed to be the victory lap. Instead, it became the setup for one of 2025’s most violent liquidation events, as roughly $866 million in long positions were vaporized in the span of a single day after US inflation data landed like a cold shower on overleveraged traders. The total damage: more than $1 billion in liquidated positions across both sides of the trade, with longs eating approximately 86% of the pain. What actually happened The sequence played out like a textbook trap. Bitcoin punched through to fresh highs above $123,500 around August 14, drawing in a wave of leveraged long bets from traders convinced the momentum had more room to run. Then the US Bureau of Labor Statistics released Producer Price Index numbers that came in hotter than Wall Street expected, reigniting fears that the Federal Reserve would keep interest rates elevated longer than markets had priced in. The reaction was swift and merciless. Approximately $866 million in long positions were liquidated within a 24-hour window, while shorts lost a comparatively modest $140 million. That six-to-one ratio between long and short liquidations tells you ju...