Reasons Why BTC Down Despite Rate Cut Hype
The post Reasons Why BTC Down Despite Rate Cut Hype appeared on BitcoinEthereumNews.com.
The crypto market has seen a massive $837 million liquidation event, with $672 million from long positions The crash was fueled by softer institutional demand, with spot Bitcoin ETFs seeing $1.2B in outflows As Bitcoin’s dominance falls, the Altcoin Season Index has surged to a 2025 high of 59%, a bullish signal Bitcoin is fighting to hold the line at $112,750 this Monday, after a brutal weekend crash wiped out over $837 million in leveraged bets and reset the market’s momentum. The post-Jackson Hole euphoria is gone, replaced by a high-stakes battle at a critical price level. Here’s a direct breakdown of what the market is asking. Why Did the Crypto Market Crash This Weekend? According to a note from trading firm QCP Capital, the crash was a direct result of “softer institutional demand” for Bitcoin. The firm points to six straight days of net outflows from spot Bitcoin ETFs, totaling about $1.2 billion. This created a weak bid that could not absorb the weekend’s selling pressure, a situation made worse after Bitcoin’s Key $112k Support Was Lost in a Whale Dump. The price drop triggered a massive liquidation cascade. In the last 24 hours, over $837 million was wiped out from leveraged traders’ accounts. Data from CoinGlass shows the vast majority of this, around $672 million, was from bullish “long” traders, resulting in a classic long squeeze that pushed prices down even further. As a result, the fear of further liquidation has surged, as shown by the drop in the Bitcoin fear and greed index during the past two days from 60% to 47% Top Reasons Why Crypto Dropped The top reason why the crypto market dropped in the past three days, even with the September Fed rate cut hype, was largely due to mixed actions from whale investors.…
Filed under: News - @ August 25, 2025 9:28 pm