Bitcoin adds to recent pullback as crypto liquidations swell

[Closeup of bitcoin coin in a shopping cart with euro coins. BTC coin with dark background.]
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Bitcoin (BTC-USD [https://seekingalpha.com/symbol/BTC-USD]) extended its recent slide from all-time highs earlier in the month, as increased crypto liquidations pushed prices lower.

The cryptocurrency dipped 1.5% to $115.7K in the last 24 hours at 9:15 a.m. ET, leaving bitcoin (BTC-USD [https://seekingalpha.com/symbol/BTC-USD]) around 7% off the $123.6K record last week. Ether (ETH-USD [https://seekingalpha.com/symbol/ETH-USD]) decreased 2.8% to $4.35K, Aero Coin (AERO-USD [https://seekingalpha.com/symbol/AERO-USD]) -6%, Skycoin (SKY-USD [https://seekingalpha.com/symbol/SKY-USD]) -5% and Story (IP-USD [https://seekingalpha.com/symbol/IP-USD]) -4.9%.

Some 131.1K traders were liquidated in the past 24 hours, with losses amounting to $565.4M, according to data [https://www.coinglass.com/LiquidationData] from CoinGlass. Of that total, bitcoin (BTC-USD [https://seekingalpha.com/symbol/BTC-USD]) long liquidations totaled $110.2M and ether (ETH-USD [https://seekingalpha.com/symbol/ETH-USD]) long liquidations were $145.0M.

In both cases, market participants were wiped out at market prices to cover margin calls, adding to the downward pressure on prices.

Crypto prices had reached new records [https://seekingalpha.com/news/4485274-bitcoin-touches-another-high-amid-risk-on-sentiment-ether-climbs] at the beginning of last week on the back of favorable regulatory developments, though subsequent hotter-than-expected wholesale inflation data [https://seekingalpha.com/news/4485311-producer-prices-pop-in-july-easily-topping-expectations] drove a pullback.

In the meantime, other risk assets like U.S. stock index futures were more muted, [https://seekingalpha.com/news/4486369-sp500-nasdaq-dow-jones-outlook-stock-market]as traders turned their attention to retail earnings and Federal Reserve Chair Jerome Powell's speech at Jackson Hole later in the week.

Strategy (MSTR [https://seekingalpha.com/symbol/MSTR]), which earlier Monday disclosed [https://seekingalpha.com/news/4486517-strategy-purchases-514m-of-bitcoin-in-past-week] another round of bitcoin purchases, saw its shares slip 1.6% in premarket trading. Crypto exchange Coinbase Global (COIN [https://seekingalpha.com/symbol/COIN]) retreated 2% and crypto investment firm Galaxy Digital (GLXY [https://seekingalpha.com/symbol/GLXY]) (OTCPK:BRPHF [https://seekingalpha.com/symbol/BRPHF]) shed 2.3%. Bitcoin miners MARA Holdings (MARA [https://seekingalpha.com/symbol/MARA]) -2.7% and Riot Platforms (RIOT [https://seekingalpha.com/symbol/RIOT]) -1.3% also changed hands in the red.

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