Bitcoin Drop to $111,000 May Have Triggered $500M in Long Liquidations Amid Thin Liquidity, Macro Fears

• BTC plunged to ~$111,000, wiping out $500M+ in long positions

• Market volatility amplified by macroeconomic fears and thin weekend liquidity

• Ethereum fell ~7% and major altcoins saw correlated selling pressure; CME futures funding signaled speculative excess

Bitcoin price drop: BTC plunged to $111,000 with $500M long liquidations on Aug 24, 2025 — read concise analysis, market impacts, and risk-management steps.

What caused the Bitcoin price drop on August 24, 2025?

Bitcoin price drop resulted from a rapid unwind of leveraged longs during a low-liquidity weekend, amplified by macroeconomic risk-off sentiment. Immediate triggers included thin weekend order books, elevated funding rates on futures, and stop-loss cascades that converted a small imbalance into a large, fast move.

How did BTC liquidations exceed $500 million so quickly?

High leverage across derivatives platforms and concentrated long exposure caused cascading liquidations. TradingView data (plain text) recorded minute-scale moves from roughly $114,700 to $110,600 on August 24, 2025, which triggered automated margin calls. Liquidation engines on major venues executed in quick succession, eroding support and widening the slide.

How did the drop affect Ethereum and major altcoins?

Ethereum fell roughly 7% as correlated risk-off flows hit spot and derivatives markets. Major altcoins displayed comparable declines, reflecting broad deleveraging. Spot ETF outflows and subdued institutional buying intensified selling pressure during the same period.

What market indicators signaled excess before the crash?

CME futures funding rates and elevated perpetual swap funding signaled speculative excess. Open interest had grown during the week, and concentrated bullish positions raised vulnerability to a liquidity shock. Historical patterns show Sunday trading often presents thinner books and larger price moves.

Frequently Asked Questions

How much was liquidated during the August 24 BTC drop?

Over $500 million in long positions were liquidated as Bitcoin fell toward $111,000; the figure aggregates recorded margin liquidations across derivatives platforms and reflects rapid deleveraging during the event.

Why do weekend moves cause larger liquidations?

Weekend sessions typically have thinner liquidity and fewer market makers, so large orders or stop cascades produce steeper price moves. Thin books make it harder to absorb selling, increasing the chance of concentrated liquidations.

What risk-management steps can traders take after such moves?

Short-term steps include reducing leverage, widening stop placements to avoid stop cascades, and using position sizing rules to limit exposure. Institutions should evaluate margin models and liquidity stress tests to reduce concentrated counterparty risk.

Market Data Summary

Key Takeaways

• Leverage risk: Elevated leverage multiplied losses—manage position sizes and use conservative leverage.
• Thin liquidity: Weekend and off-hour trading can produce outsized moves—plan executions accordingly.
• Market signals: High funding rates and rising open interest indicated speculative excess before the drop.

Conclusion

This Bitcoin price drop on August 24, 2025 highlights the interaction of thin liquidity, macro risk-off sentiment, and concentrated leverage. Traders and institutions should use this event to reassess leverage, liquidity planning, and execution strategies. For ongoing coverage and analysis, COINOTAG will monitor developments and publish updates as new data becomes available.

Published: 2025-08-24 | Updated: 2025-08-24 | Author: COINOTAG