Crypto Market Faces $480M Liquidation Amid Inflation Data

Bitcoin Market Volatility: Leadership Changes and Institutional Moves

Bitcoin’s price fell sharply below $109,000 in August 2025 following a major selloff of 24,000 BTC, leading to over $480 million in long position liquidations globally.

Peter Schiff’s criticism highlights ongoing concerns over Bitcoin’s volatility and its impact on investors, as heightened market activity and institutional actions exacerbate tension.

Bitcoin’s price drop below $109,000 triggered a rapid liquidation of long positions, surpassing $480 million, heightened by hotter-than-expected PCE inflation data, causing debate and criticism within the crypto community.

Peter Schiff, a known Bitcoin critic and CEO of Euro Pacific Capital, argued for selling Bitcoin as its value receded. He suggested a possible decline to $75K, linking this move to broader market concerns.

The impact was significant, with Bitcoin and Ethereum witnessing heavy liquidations. Confusion in the market was further fueled by institutional moves from key players like MicroStrategy .

Market reactions highlight a widening divide between retail panic and institutional strategies, as seen with MicroStrategy’s substantial Bitcoin purchases, despite the drawdown.

This incident aligns with historical market behaviors during over-leveraged conditions, where macroeconomic factors intersect with cryptocurrency dynamics.

Potential outcomes may include increased market volatility and regulatory attention, particularly as the crypto environment adapts post-liquidity. Historical trends show similar cascades during high stakes market events. Institutional behavior continues shaping long-term crypto expectations.

“Bitcoin just dropped below $109K, down 13% from its high less than two weeks ago. Given all the hype and corporate buying, this weakness should be cause for concern. At a minimum, a decline to about $75K is in play, just below $MSTR’s average cost. Sell now and buy back lower.” — Peter Schiff on X (Twitter), August 26, 2025