Bitcoin Price Falls to $108K as $535M Liquidations Rock the Market

Bitcoin Price Slides to $108K After $124K Peak

Bitcoin (BTC-USD) is trading sharply lower at $108,299, down over 4.2% on the day and nearly 12% below its $124,128 all-time high reached earlier this month. The correction has broken through the 20-day and 50-day EMAs around $114,000, a critical loss of technical footing that put the market back into a short-term bearish channel. The lowest point of the session touched $108,617, the weakest level since early July, and the market is now clinging to the $107,000 zone as the last immediate support preventing a deeper fall toward $103,991.

Heavy Liquidations Across Crypto Market

The selloff triggered massive forced closures, with $535 million in total liquidations, including $446 million in longs, according to CoinGlass. Within just an hour, $63 million was wiped out, with $60 million coming from long traders caught on the wrong side of the move. Ethereum (ETH-USD) shed nearly 5% to $4,326, XRP (XRP-USD) sank 6% to $2.84, and Solana (SOL-USD) dropped 3% to $208 after touching a six-month high of $217 the prior day. These correlated drops underscore how Bitcoin continues to lead broader risk sentiment across digital assets.

Miners Dump $500M Bitcoin

Blockchain data shows miners sold 4,207 BTC valued at nearly $500 million in the span of 12 days between August 11 and 23, the fastest liquidation pace in nine months. That selling offset the modest 6,675 BTC miners had added from April through July. Such outflows pressure short-term price stability since miners’ reserves play a key role in supply dynamics. In contrast, corporations like MicroStrategy (NASDAQ:MSTR) continue to accumulate aggressively, holding 632,457 BTC, while its stock has surged more than 2,200% since adopting Bitcoin in 2020. The split highlights miners meeting operational cash flow needs versus institutions using BTC as a balance-sheet growth strategy.

Institutional Targets Push Beyond $120K

Despite the downturn, large investors remain convinced of Bitcoin’s upside. JPMorgan analysts argue BTC should already trade at $126,000, citing a collapse in annualized volatility from 60% at the start of 2025 to just 30% now, a historically low level that makes Bitcoin structurally more investable. Bitwise Asset Management projects Bitcoin could reach $1.3 million by 2035, assuming a 28.3% CAGR, and sees a bullish case as high as $2.97 million. With U.S. debt climbing above $36 trillion and annual interest payments ballooning to $952 billion, institutions are positioning Bitcoin as a scarce hedge against fiat erosion.

Technical Picture: Rising Wedge and Key Levels

The chart shows Bitcoin moving within a rising wedge, bounded by support at $107,000 and resistance near $116,000. A break below wedge support risks a sharp fall to $103,991, while a breakout above resistance could see a run toward $120,000–$122,000. The RSI at 55 suggests neutrality, while Chaikin Money Flow at +0.20 signals positive inflows. However, the MACD histogram is fading, a warning that momentum is softening even as capital continues entering the market.

Binance Outage Sparks Panic at $110K

Market volatility was compounded by a 20-minute outage on Binance Futures, which froze leveraged traders out of positions between 14:18 and 14:36 UTC+8. During that window, Bitcoin slipped below $110,000, while BNB (BNB-USD) fell 1.8% to $857.79. Binance restored services quickly and reassured users that funds were safe, but the episode underscored how infrastructure shocks can trigger outsized reactions in a 24/7 global market.

Realized Prices Define Breakpoints

BTC has fallen under its 1-month and 3-month realized prices at $115,300 and $113,700, placing selling pressure on recent buyers. The 6-month realized price at $107,440 now functions as the pivot level for market psychology. On August 26, Bitcoin rebounded from the short-term holder realized price of $108,500, showing its importance as an accumulation line. Across 2025, the average buyer’s realized price sits near $100,000, making it the ultimate psychological floor for this cycle.

Corporate Treasury Strategies Lose Shine

The early excitement around Bitcoin treasuries has cooled. GameStop (NYSE:GME), which bought 4,710 BTC, initially spiked 12% on its announcement but has since slid to $22.79, down 27% YTD. Empery Digital (NASDAQ:EMPD), rebranded from an EV maker after announcing a $500M Bitcoin plan, is now down 80% this year despite holding 4,019 BTC. Sequans Communications (NYSE:SQNS) collapsed from $5.39 to $0.91 after disclosing plans to accumulate 100,000 BTC by 2030. While Japan’s Metaplanet saw shares soar as much as 6,000% on its treasury strategy, the latest wave of buyers has largely failed to sustain momentum, proving that balance sheet optics alone cannot drive long-term equity performance.

Bitcoin (BTC-USD) Verdict – Hold, Cautiously Bullish Above $107K

Bitcoin’s drop to $108,000 reflects a market balancing miner selling, liquidation waves, and macro pressures from U.S. inflation and Fed policy expectations. Support at $107,000 remains the battle line: a hold here opens the path to $116,000–$120,000, while a breakdown risks deeper retracement. With institutional forecasts as high as $126,000 near-term (JPMorgan) and $1.3M long-term (Bitwise), the structural case remains bullish, but near-term volatility warrants a Hold rating with a cautious bullish tilt if support levels hold.

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