Crypto Market Crashes: Bitcoin Dips Below $110K, Ethereum Drops 7%, Over $935 Million Liquidated

Introduction:

The crypto market experienced a dramatic downturn on August 26, 2025, as Bitcoin plunged below the critical $110,000 support level and Ethereum suffered a nearly 7% drop. Within just 24 hours, over $935 million worth of leveraged positions were liquidated, shaking investor confidence and sending altcoins tumbling. Here’s an in-depth analysis of what triggered this crash, market reactions, and what lies ahead for traders and investors.

What’s Behind the Crash?
1. Bitcoin Breaks Key Support

Bitcoin (BTC) slumped to $109,925.87, marking a 2.66% intraday drop and nearly 8% weekly decline. This fall below the $110K support sparked significant sell pressure.

2. Ethereum’s Steep Decline

Ethereum (ETH) dipped 6.76% intraday, trading at $4,408.57, though it remains 13.85% higher on the week, suggesting mixed short- and medium-term momentum.

3. Broad Liquidation Wave

A staggering $935 million in crypto positions were liquidated within 24 hours, contributing to the market-wide selloff.

Other assets saw steep declines too:

• Solana (SOL): –10.15% to $188.02

• XRP: –4.14% to $2.90

• Binance Coin (BNB): –3.42%

• Dogecoin (DOGE): –8.80%

• Cardano (ADA): –8.50%

  Stablecoins like USDT and USDC held steady at $1.00, providing a semblance of stability amid the chaos.

  
  

Market Triggers & Analyst Insights

Flash Crash Sparked by "Whale" Activity

Analysts say a large "whale" offloading significant Bitcoin holdings triggered a flash crash, leading to rapid liquidation across the market. This surge followed an earlier rally fueled by dovish hints from the Federal Reserve's Jerome Powell.

Macro Pressures Add Fuel

Beyond crypto-specific catalysts, macroeconomic concerns—like a rebounding U.S. dollar and less enthusiastic Fed tone—played a role in spooking markets and prompting profit-taking.

What This Means for Investors

• Bullish Resilience May Be Tested: Failing to regain $110K support could extend deeper corrections. 

• Opportunistic Entry Points? Many analysts view dip-buying opportunities, especially near key technical levels. 

• Volatility Likely to Persist: Expect continued chop as markets digest macro developments and leveraged position resets. 

Conclusion:

The crypto crash of August 26, 2025, underscores how quickly sentiment can shift in a highly leveraged, macro-synergistic market. With Bitcoin breaching key technical thresholds and sweeping liquidations across altcoins, the shakeout serves as a stark reminder of crypto's volatility. Whether this marks a turning point or a temporary reset depends largely on how the market responds in the days ahead to economic signals and rebalancing flows.