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AnalysisCryptocurrencies

Crypto Markets Fall Across the Board as Bitcoin Drops Below $78,000

TradingKey

AuthorBlock 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.

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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.

Crypto-marketcap-top10-3358168717fa49b9ae0cb5959986dda2 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 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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Disclaimer: The content of this article solely represents the author's personal opinions and does not reflect the official stance of Tradingkey. It should not be considered as investment advice. The article is intended for reference purposes only, and readers should not base any investment decisions solely on its content. Tradingkey bears no responsibility for any trading outcomes resulting from reliance on this article. Furthermore, Tradingkey cannot guarantee the accuracy of the article's content. Before making any investment decisions, it is advisable to consult an independent financial advisor to fully understand the associated risks.

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