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Bitcoin soared to an all time high of $124K on August 14, 2025, during Asian trading hours. And it kept pushing its market cap to record levels, sending investors into a frenzy. But the celebration was short lived; a sharp 4% plunge wiped out approximately $5,800 in hours.
The move liquidated over $577 million in leveraged positions, leaving traders reeling and sparking debate over whether this was a healthy correction or a warning sign.
As of August 15, Bitcoin trades at $118,963, down from its peak and still falling. However, this is still up around 10% for the month. Analysts remain split: some see a brief breather before the next surge, while others warn of overextension.
Bitcoin at $124K: What’s Behind the Surge?
Two forces fueled the sell off. First, hotter than expected U.S. inflation data dampened hopes for a September Federal Reserve rate cut. Higher PPI and CPI readings triggered risk off sentiment, with the CME FedWatch tool cutting rate cut odds to 85% from near certainty.
Second, profit taking hit hard. Short term holders and leveraged traders cashed out at the top, with over $930 million in liquidations. Whale activity spiked, over 5,000 BTC moved by large holders, while CryptoQuant reported 21,400 BTC flowing to exchanges in a single day.
Rally Roots and Market Outlook
The climb to $124K followed August’s bullish wave driven by pro crypto policies from President Trump and strong ETF inflows. Technical experts suggest $118K as key short term support, with upside targets of $130K to $150K if momentum returns. But risks remain from U.S. tariffs increasing hardware costs and persistent inflation.
Despite the drop, institutional appetite remains strong. Spot Bitcoin ETFs continue to attract inflows, locking up significant supply. The broader crypto market cap holds above $3.7 trillion, while Ethereum mirrored Bitcoin’s run before cooling off.
You can keep a check on both Bitcoin and Ethereum prices here.
