Cryptos Plunge as Bitcoin Pulls Back From Highs, Drops Below $80,000

TradingKey - Cryptocurrencies fell broadly, with Bitcoin pulling back after a surge to lose the $80,000 threshold.

On August 28, the cryptocurrency market fell 1.6%, wiping out over $100 billion in market value. Among them, Bitcoin (BTC) dropped over 2%, losing the $80,000 mark; Ethereum (ETH) fell 2%, breaking below $2,500; Binance Coin (BNB) fell 2.4%, breaching $700; and Ripple (XRP) dropped 5%, falling below $1.5.

The cryptocurrency market experienced a sharp pullback after a rapid surge. In particular, Bitcoin retreated after rising above $81,000, triggering a wave of profit-taking and leverage liquidations that dealt heavy blows to both longs and shorts. Over the past 24 hours, the crypto market saw over $600 million in liquidations, split roughly evenly between long and short positions.

Cryptocurrency market liquidation data, Source: CoinGlass

After Bitcoin's price broke through a key psychological level, a surge of short-term profit-taking emerged, triggering a chain reaction of liquidations among high-leverage long positions in the derivatives market. The mechanical sell-off resulting from liquidations further intensified short-term downside pressure. Meanwhile, the market remained sensitive to Federal Reserve policy expectations and geopolitical developments, prompting institutional capital to adopt a cautious stance, locking in profits and taking a wait-and-see approach.