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TradingKeyAuthorBlock Tao
Aug 31, 2026 1:22 AM
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The cryptocurrency market experienced a broad sell-off on August 31, with Bitcoin dropping below $78,000 and major altcoins following suit. This downturn was triggered by Federal Reserve Chair Warsh’s emphasis on inflation risks at Jackson Hole, which tempered rate-cut expectations and prompted profit-taking. Heavy long leverage accumulated above $80,000 accelerated the decline, as breaching key support levels triggered cascading on-chain and exchange liquidations. Over 24 hours, total liquidations reached $390 million across nearly 100,000 traders, with long positions accounting for approximately 70% of the losses.
TradingKey – Crypto market triggers a sell-off wave as Bitcoin plunges below the $78,000 mark, with altcoins broadly following suit.
On August 31, the cryptocurrency market came under pressure and moved downward, with major coins falling broadly. Among them, Bitcoin (BTC) fell 0.33%, losing the 78,000 mark; Ethereum (ETH) fell 1.3%, losing the 2,500 mark; Binance Coin (BNB) fell 0.86%, breaching $690; and XRP fell 2.18%, losing $1.4.
Price changes of the top 10 cryptocurrencies by market cap; Source: TradingView
Last Friday, Federal Reserve Chair Warsh emphasized data dependency and inflation risks at the Jackson Hole annual central banking symposium. As market optimism for a larger-than-expected rate cut in September moderated, capital previously betting on macro policy easing chose to lock in profits, triggering a sell-off on good news.
Bitcoin prices had accumulated heavy long leverage above $80,000. This drop below $78,000 automatically triggered market sell orders from massive long liquidations on-chain and across <a href="https://xpertsstudio.com/5-best-crypto-exchanges-for-trading-u-s-stock-perpetual-futures-in-2026/” title=”5 Best Crypto Exchanges for Trading U.S. Stock Perpetual Futures in 2026″>exchanges, forming a cascade of liquidations that accelerated the short-term downside. In the past 24 hours alone, nearly 100,000 traders were liquidated, amounting to $390 million, with long liquidations accounting for $270 million, or nearly 70%.
This content was translated using AI and reviewed for clarity. It is for informational purposes only.
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