A worsening macroeconomic climate and the collapse of industry giants such as FTX and Terra have weighed on bitcoin's price this year.
The crypto market tumbled to begin the week as heightened macro concerns triggered more than $500 million in forced selling of long positions.
The price of bitcoin was last lower by 2% at $115,255.70, after touching a new all-time high last week – its fourth one this year – at $124,496. At one point, it fell as low as $114,706. Ether slid 4% to $4,283.15 after coming within spitting distance of its roughly $4,800 record last week. Both coins rolled over after higher-than-expected July wholesale inflation data raised questions over a Federal Reserve rate cut in September.
Investors' profit-taking triggered a wave of liquidations across the crypto market.
In the past 24 hours, sales from 131,455 traders totaled $552.58 million, according to Coin Metrics. That figure includes about $123 million in long bitcoin liquidations and $178 million in long ether liquidations. This happens when traders are forced to sell their assets at market price to settle their debts, pushing prices lower.