Crypto Meltdown: Bitcoin Crashes Below $110K, Over 200,000 Traders Liquidated

TradingKey – On Tuesday, August 26, the crypto market plunged sharply, triggering widespread liquidations. In the past 24 hours, more than 201,000 traders were liquidated, with total losses reaching $890 million — a staggering 89% of which came from long positions.

Liquidation Data – Source: CoinGlass

Bitcoin Leads the Sell-Off

Bitcoin (BTC) dropped over 3%, breaking below the $110,000 threshold and trading at $109,305 at press time. Ethereum (ETH) followed with an 8% decline, nearing $4,300, while Ripple (XRP) fell more than 4%, slipping below the $3 mark to $2.86. Other altcoins also posted steep losses, with Solana (SOL), Dogecoin (DOGE), and Chainlink (LINK) among the hardest hit.

Top 10 Crypto Price Changes – Source: CoinMarketCap

Fed Signals Fuel Uncertainty

This latest correction wasn’t triggered by any major negative news. Instead, it reflects fading optimism around Federal Reserve rate cuts. Last Friday (August 22), Fed Chair Jerome Powell delivered a dovish message at the Jackson Hole Symposium, briefly boosting market sentiment. Bitcoin surged over 3% in the hour following his remarks.

However, other Fed officials — including Lorie Logan, Susan Collins, and Neel Kashkari — quickly tempered expectations, casting doubt on near-term easing and dampening investor confidence.

Eyes on Friday’s PCE Report

The next key macro event is the release of U.S. Personal Consumption Expenditures (PCE) data on Friday, August 29. This inflation metric will be closely watched as a potential catalyst for Fed policy shifts — and could determine whether crypto markets rebound or continue their slide.