Bitcoin & Ethereum Under Pressure: Crypto Markets Hit Turbulence in August 2025
Crypto's heavyweights wobble as liquidity tightens—but is this just another buying opportunity masquerading as a crisis?
Blood in the streets? More like a discount aisle.
Bitcoin and Ethereum are taking heat as leveraged positions get liquidated faster than a Wall Street intern's career aspirations. The squeeze follows weeks of sideways action—classic market behavior before either a breakout or a breakdown.
Whales vs. minnows: Who blinks first?
Retail traders panic while institutions quietly accumulate. Funny how that works—every 'crisis' seems to end with the same players holding more bags. Meanwhile, crypto Twitter oscillates between 'THE END IS NIGH' and 'STACK THOSE SATS.'
Markets move in cycles, but greed and fear? Those never change. Just ask the hedge funds now pretending they never loved altcoins.
Galaxy Digital and the Altcoin Blues
Galaxy Digital’s Michael Novogratz isn’t exactly dancing with joy right now. He warned last week that the wild rush of companies reinventing themselves as “crypto treasuries” might have peaked. And looking at the numbers, he may be right. Some of these companies, like Metaplanet and Upexi, saw their stocks collapse by more than 50% after pivoting into Bitcoin and Solana. That’s not the fairy tale ending they promised investors.
For many, the key number to watch is mNAV. This little metric compares the company’s value to its crypto stash. If mNAV drops below 1, it means the stock is worth less than the coins it owns. That’s a red flag for selling pressure. Right now, Metaplanet sits at 2.39, Upexi at 1.7, but the slide is real. And insiders aren’t helping. Reports say some are cashing out quickly after hyping up their new crypto strategies. Investors are left holding the bag, wondering if the “crypto pivot” era has already passed its peak.
Coinglass Puts the Squeeze Spotlight On
If you want real drama, look no further than the short squeeze brewing in Bitcoin and Ethereum. According to Coinglass, over $500 million in longs got liquidated in just 24 hours during the crash. Ethereum traders, in particular, have piled into the largest-ever Leveraged short position. That’s like betting the house that ETH will fall further. But here’s the twist: too many shorts in one place can trigger the mother of all squeezes.
When Bitcoin rebounded slightly to $116,000, analysts pointed out liquidation clusters stacked around $116,500. If BTC pops above that, a wave of shorts could get wiped out, sending prices rocketing in the opposite direction. Ethereum faces a similar setup. In short, bears may be setting themselves up for a painful squeeze. It’s the crypto market’s favorite party trick: just when everyone thinks the floor is falling out, the trapdoor slams shut, and prices explode upward.
Macro Madness Meets the Crypto Market
Of course, it’s not all about charts and liquidations. The broader world is also messing with traders’ nerves. U.S. producer prices came in hotter than expected, spooking investors ahead of the Federal Reserve’s Jackson Hole symposium. Everyone wants Powell to whisper sweet rate-cut promises, but nothing is guaranteed. Until then, sideways trading between $112K and $120K for bitcoin seems likely. Any surprise words from Powell could tip the scales.
Meanwhile, global politics add extra spice. The ongoing U.S.-Russia-Ukraine tensions make traders cautious. Central banks are buying gold instead of crypto, pulling capital away. Even U.S. Treasury officials disappointed markets by confirming there’s no plan for a Bitcoin reserve. And let’s not forget good old-fashioned profit-taking. After a massive rally, whales cashed out billions, with one ETH wallet alone dumping $54 million on exchanges. When you mix macro fears, geopolitical drama, and whales selling into strength, it’s no wonder the crypto market looks shaky.
Still, crypto lives for volatility. Traders complain about the pain, but deep down they love the action. After all, without the chaos, what would we even talk about on Crypto Twitter?
