Why Did Crypto Drop? Here’s Why Sundays See Liquidation Hunting

Why did crypto drop? On Sunday, August 24, 2025, Bitcoin plummeted from $114,700 to $110,600 in a matter of minutes, triggering $500M in liquidations and wiping out leverage long positions. Ethereum and Solana also felt heavy selling pressure.

The sell-off reflected macro fears, profit-taking, and ETF slowdown, while thin weekend liquidity magnified volatility. Sundays often become prime targets for whale-driven liquidation hunting, exploiting stop-loss clusters and overleveraged traders.

(Source – Tradingview.com)

Why Did Crypto Drop: Macros, Profit-Taking, and ETF Slowdowns

The August 24 crash was a perfect storm of macro uncertainty, technical weakness, and fading ETF momentum. Hotter-than-expected U.S. inflation and PPI data spooked markets, sparking risk-off sentiment after earlier Fed optimism.

Investors had priced in rate cuts sooner, but Powell’s Jackson Hole remarks gave way to fresh doubts, leading to global sell-offs. Still, Bitcoin is seen as a risk asset and is on the front lines of the first waves of bearish attacks.

Bitcoin didn’t just “take profits” today—it got caught in a perfect storm. Here’s the clean breakdown of why the 1‑hour candle on Aug 24 knifed from ~$117K to sub‑$112K

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