206,605 traders were liquidated in 24 hours as Bitcoin price dipped under $110,000, wiping $904 million in positions and forcing a reset of fragile leverage across majors. This concise snapshot outlines why the move mattered and what it set up next for crypto portfolios.
This sell-off reset funding, sentiment, and key support levels in one session.
Bitcoin price breaks $110,000: how we got here
Bitcoin (BTC) slipped below a widely watched psychological level after a swift futures unwind cascaded through derivatives venues. Data shared by multiple market watchers showed longs bearing the brunt of liquidations as open interest thinned and spot bids stepped back. The drop arrived amid mixed flow signals: Bitcoin ETFs showed a $219.1 million net inflow on August 25, yet other trackers flagged a multi-day outflow streak earlier in the week, suggesting choppy demand timing rather than a decisive exodus.
Volatility also landed just as macro uncertainty re-entered the frame: a looming U.S. data slate (Q2 core PCE and jobless claims) and ongoing Federal Reserve drama kept risk appetite uneven. Meanwhile, Ethereum (ETH) ETFs recorded a far larger $443.9 million net inflow that same day, underscoring the persistent rotation debate even as BTC set the tone for cross-asset risk.
Bitcoin price and liquidations: who was on the wrong side
With $904 million liquidated across 206,605 accounts, the majority of the pain sat with over-levered longs. That lines up with on-chain and derivatives hints from recent days: funding turned rich, perpetual premiums widened, and a pocket of forced buyers crowded the top after BTC tagged fresh highs last weekend. Once price knifed through stop clusters, forced selling amplified the slide.
Some analysts also pointed to a potential “CME gap” magnet between $94,000 and $96,000—an area several traders highlighted as a possible downside target if support at $110,000 proved fragile. While gaps don’t guarantee fills, the market’s fixation on them can influence positioning and set trap-door dynamics in fast tape.
Bitcoin price drivers to monitor next
- Spot and ETF flow split: $219.1 million BTC ETF net inflow (Aug 25) versus earlier outflow streaks.
- Derivatives reset: lower open interest and cooler funding would favor a steadier base.
- Macro data: Q2 core PCE and jobless claims could sway risk and USD trajectories.
- Liquidity breadth: stablecoin inflows across chains often precede stronger spot bids.
- Sentiment gauges: Fear & Greed moved from 60 to 47 in a week—watch for stabilization.
Bitcoin price versus ETH rotation: a tale of two flows
Even as BTC dictated the day’s direction, ETH drew stronger fund traction. ETH ETFs posted a $443.9 million net inflow on August 25, while BTC ETFs tallied $219.1 million. That divergence revived questions about cycle leadership, with some desks suggesting BTC remains the macro hedge while ETH captures incremental risk appetite tied to yield, L2 activity, and app momentum.
For traders, the practical takeaway is straightforward: knee-jerk selling after new highs rarely rewards, but so does blindly averaging into leverage. Position sizing around well-defined invalidation levels—and letting ETF and on-chain flow confirm the turn—beats predicting it.
Strategy notes for the next 48 hours
BTC’s sharp pullback opened a few practical pathways. First, observe whether price acceptance forms above or below the $110,000 area; a consistent reclaim with lighter funding would argue for consolidation rather than a deeper slide. Second, watch ETFs and spot desks: continuous small net buys often matter more than a single big print. Third, map the gap risk: if the $94,000–$96,000 zone pulls, set alerts rather than predictions.
Lastly, follow liquidity. Stablecoin inflows into major exchanges, improving breadth across L1s, and rising on-chain volumes typically precede steadier spot demand. In short, let verifiable flows lead. Bitcoin price will write the next chapter, but you don’t need to guess the ending to trade the pages in between.
Forward look: if BTC stabilizes and ETFs keep absorbing supply, bears will lose time, not just price. If flows fade and macro surprises hawkish, the market may test that CME gap. Either way, Bitcoin price belongs on your dashboard—proof beats prediction.
