Crypto Markets Fall Across the Board as Bitcoin Drops Below $78,000

TradingKey - Crypto market triggers a sell-off wave as Bitcoin plunges below the $78,000 mark, with altcoins broadly following suit.

On August 31, the cryptocurrency market came under pressure and moved downward, with major coins falling broadly. Among them, Bitcoin (BTC) fell 0.33%, losing the 78,000 mark; Ethereum (ETH) fell 1.3%, losing the 2,500 mark; Binance Coin (BNB) fell 0.86%, breaching $690; and XRP fell 2.18%, losing $1.4.

Price changes of the top 10 cryptocurrencies by market cap; Source: TradingView

Last Friday, Federal Reserve Chair Warsh emphasized data dependency and inflation risks at the Jackson Hole annual central banking symposium. As market optimism for a larger-than-expected rate cut in September moderated, capital previously betting on macro policy easing chose to lock in profits, triggering a sell-off on good news.

Bitcoin prices had accumulated heavy long leverage above $80,000. This drop below $78,000 automatically triggered market sell orders from massive long liquidations on-chain and across exchanges, forming a cascade of liquidations that accelerated the short-term downside. In the past 24 hours alone, nearly 100,000 traders were liquidated, amounting to $390 million, with long liquidations accounting for $270 million, or nearly 70%.