Bitcoin Falls to $113K as Crypto Market Suffers Heavy Losses

August 20, 2025: Bitcoin has dropped sharply to nearly $113,000 (PKR 3.1 crore) after touching a record high of $124,000 (PKR 3.4 crore) just last week. The sudden fall has shaken the entire crypto market, with Ethereum also sliding down to around $4,100 (PKR 11.4 lac).

Why is Bitcoin Dropping?

The decline is linked to global economic pressures. Rising U.S. tariffs and concerns about high inflation have reduced investor appetite for risky assets. Traders who had gained during the rally rushed to book profits, adding more pressure on the market.

ETF Outflows and Regulatory Worries

Another major reason is the outflow of funds from crypto ETFs. Combined with uncertainty over regulations, this has made it difficult for Bitcoin to hold a stable position.

Massive Liquidations

In just 24 hours, more than $113 million worth of leveraged long positions were liquidated. This created a chain reaction, pushing Bitcoin further down and also hurting smaller altcoins.

Panic Selling vs Whale Buying

Many small investors are panicking and selling their holdings. But some large investors, also known as whales, are taking advantage of the dip. Reports suggest one whale on Bitfinex has been buying nearly 300 BTC every day using a special trading strategy. This shows that some big players still trust Bitcoin’s future growth.

Impact on Other Markets

The fall in Bitcoin also hit companies linked with crypto. MicroStrategy’s stock dropped 7.8%, while Coinbase and Galaxy Digital recorded losses between 5% and 10%. Wall Street investors also pulled back from crypto-related shares.

Why This Fall Matters

This correction highlights how sensitive Bitcoin is to global economic changes. With the Federal Reserve’s Jackson Hole meeting approaching, investors are nervous about what policies may come next. While short-term losses are painful, experts believe that disciplined investors may see this as an opportunity.

For now, Bitcoin’s journey continues to prove it is highly volatile but still central to the global financial debate.