What Caused Bitcoin to Fall from $124,000 to $108,400 in two Weeks?

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Bitcoin’s drop from $124,000 to $108,400 over two weeks in August 2025 stemmed from a combination of manipulative market practices, macroeconomic pressures, and technical factors. Here’s a detailed breakdown of the key causes based on recent market data and analyses:

1. Liquidity Hunting and Liquidations:

Centralized exchanges (CEXs) played a significant role in the price decline through liquidity hunting, where large players target stop-loss orders and leveraged positions to trigger liquidations. A YouTube analysis by CryptoRover, “Bitcoin Liquidity Hunt to $124K EXPLAINED,” suggests the $124,000 peak was a deliberate move to hit liquidity pools above key resistance, sparking forced sales. Coinglass reported over $900 million in liquidations on August 27, with $500 million in long positions wiped out on August 24 alone, amplifying downward pressure as over-leveraged traders were forced to sell.

2. Whale Selling and Market Sentiment:

A massive whale sell-off of 24,000 BTC, worth over $2.7 billion, occurred over a weekend, significantly accelerating the decline. This large transaction, reported by Bitcoin Magazine, sent Bitcoin from $117,000 to $108,890, with the whale transferring funds to Hyperunite, further denting market confidence. The Fear and Greed…