NEW YORK — The cryptocurrency market is on edge as analysts warn of potential sharp declines if Bitcoin (BTC) falls below $103,700 and Ethereum (ETH) dips under $4,000, levels that could trigger widespread leveraged liquidations. According to a report from CoinDesk on Tuesday, August 26, 2025, these thresholds are critical as tightening market sentiment and macroeconomic uncertainties amplify risks for investors.
Bitcoin, currently trading around $110,958 after a 3.39% drop, faces pressure from a recent whale-driven sell-off of 24,000 BTC worth $2.7 billion, which sparked $550 million in liquidations, per CoinDesk data. “If BTC breaches $103,700, we could see a cascade of liquidations pushing prices toward $95,000,” a market analyst at BlockBeats told CoinDesk, highlighting thin liquidity at lower levels. Ethereum, trading at $4,552 after a 4.07% decline, is also vulnerable, with $321.6 million in liquidated positions adding to bearish momentum.
The warnings come amid a broader market correction, with the global crypto market cap down 4.5% to $3.85 trillion, erasing billions in hours, according to The Currency Analytics. Posts on X reflect cautious sentiment, with some traders eyeing a potential rebound if Bitcoin holds above $104,000, while others brace for further downside if support fails. Key pressures include:
- Bitcoin’s critical support at $103,700, with $940 million in liquidations reported.
- Ethereum’s $4,000 threshold, tied to $321.6 million in leveraged position losses.
- Macroeconomic uncertainty, including Trump’s tariff threats and Fed policy concerns.
Analysts like Gracy Chen of Bitget remain cautiously optimistic, suggesting Ethereum could outperform Bitcoin due to rising staking and DeFi activity, potentially stabilizing above $4,600. “On-chain data shows capital rotating toward ETH,” Chen noted, citing institutional interest. However, Federal Reserve Chair Jerome Powell’s recent comments on possible rate cuts have faded in impact, with markets now focused on upcoming labor and inflation data. As traders monitor these key price levels, the crypto market’s volatility underscores the delicate balance between institutional demand and macroeconomic headwinds, with liquidations looming if supports break.
Source: CoinDesk
