Bitcoin Surged for 3 Days, but the Real Story Isn't the Price—It's the 180,000 People Who Got Liquidated
Introduction
Has your social feed been flooded with Bitcoin news over the past couple of days?
On August 19, Bitcoin jumped about 8% in a single day, nearing $70,000; by August 20, it broke through the $70,000 mark, surging over 11% in 24 hours; and on August 21, it climbed further to $74,000, with Ethereum, SOL, and other cryptocurrencies rallying across the board (data source: public financial reports from Securities Times, 21st Century Business Herald, etc., 2026-08-20/21).
"Bitcoin is up again," "This is the start of a bull run," "Did you get on board?"—similar excitement is flooding every group chat.
But I want to say something that might dampen the mood:In this surge, what ordinary people should really pay attention to isn't how much the price rose, but the two numbers nobody likes to look at—over 180,000 people liquidated in 24 hours, with liquidations exceeding $3 billion.
Why? Because big gains and big losses often happen to the same group of people in the same market move. Understanding this is far more useful than chasing a 10% rally.
In this article, I won't predict price targets, nor will I tell you to get on board. I just want to use this hot topic to walk you through three things ordinary people should think through.
Chapter 1: Look at the Data First—How This Surge Happened
Let's first lay out the sequence of this rally.
On August 19, Bitcoin started moving, rising about 8% in a day, widely attributed toimproved liquidity expectations from U.S. Treasury buybacks, as well aslarge-scale short squeezes—too many people were shorting, betting on a decline, and as the price rose, shorts were forced to cover, pushing the price even higher.
On August 20, Bitcoin broke $70,000, rising over 11% in 24 hours, with risk appetite fully recovering; Ethereum followed with a 19% gain, and SOL rose 13%.
On August 21, it pushed further to $74,000, with the crypto market seeing "broad-based rallies."
On the surface, this looks like a thrilling bull run. But within that same 24-hour window, the data shows:over 180,000 people were liquidated, with total liquidations exceeding $3 billion.
Did you notice? While the price was soaring, hundreds of thousands of people lost everything overnight. This isn't a contradiction—it's the true nature of the crypto market:in the same market move, for every winner, there's someone being liquidated.
Chapter 2: The First Thing Ordinary People Miss—Money Is Losing Value
Let's start with the first, and most overlooked, point:Why would anyone risk liquidation to bet on an asset as volatile as Bitcoin?
Behind this lies a common anxiety—money is losing value.
Michael Saylor, founder of the world's largest publicly traded Bitcoin company (MicroStrategy), shared some numbers in an interview: the U.S. dollar loses about 7% of its purchasing power each year. He cited an example: an acre of land by the beach in Miami sold for $20,000 a hundred years ago; today, it's worth $10 to $20 million.
In plain terms: you think the money sitting in your bank account is "saved," but it's actually "leaking."
So, some people view Bitcoin as a "scarce asset to hedge against inflation." Saylor's comparison: Bitcoin has returned about 33% annually, while gold has returned about 12% (figures based on Saylor's own statements in the interview).
But note—I'm not telling you to buy Bitcoin. Quite the opposite, what I want to say is:if everyone is worried about money depreciating, why does anxious money end up being harvested by high-risk, high-volatility assets? That's what the second point is about.
Chapter 3: The Second Thing Ordinary People Miss—Liquidations Behind the Surge
The second point is where this rally matters most for ordinary people:How did 180,000 people get liquidated?
Liquidation typically means "using leverage"—borrowing several times or even dozens of times your own money to bet on a direction. If Bitcoin rises, they make multiples; if Bitcoin falls, they lose everything, including their principal, in a forced close, leaving nothing.
Among the 180,000 liquidated on August 20, a significant portion wereshorts squeezed out (as mentioned, short liquidations were one of the drivers pushing the price up), while others werelongs who chased the rally and got wiped out by a pullback.
What does this tell us?
On an asset that can rise 12% in 3 days, making money isn't about "understanding"—it's about "betting on the right direction"; and behind every "right bet" is someone else who "bet wrong" and lost everything.
The most common mistake ordinary people make is equating "recent strong gains" with "I can make money." But the real pattern is:the more explosive the rally, the more it's a paradise for leveraged traders and a hell for those without risk management. You see others' profit screenshots, but you don't see the devastation of those who got liquidated.
Chapter 4: The Third Thing Ordinary People Miss—The Real 2% Window
For the third point, I want to bring the conversation back from Bitcoin to you and me.
In the same interview, Saylor also said something many overlooked: currently, only about2% of households globally have an AI subscription (data source: The Diary Of A CEO interview, as cited by Saylor, 2026-08). In other words, 98% of people are still working, learning, and creating content with "old methods."
See, there are two paths here:
One path is to put your limited savings into a highly volatile market that can rise 12% in 3 days but also wipe out 180,000 people—it's more like gambling, requiring exceptional mental fortitude and risk control.
The other path is to invest your limited time in a tool that only 2% of households have adopted and that is reshaping every industry—its certainty is far higher, and it almost never "liquidates."
I'm not saying which is more valuable, Bitcoin or AI. What I'm saying is:while the whole world focuses on "how much Bitcoin has risen," the truly scarce cognitive dividend is "who can use AI to create value first."
This is the information gap created by cognitive divides, and it's a more certain opportunity for ordinary people.
Chapter 5: After the Surge, What Ordinary People Should Do (Bookmark This)
With all that said, here's a checklist of "3 things ordinary people should do after a big rally"—bookmark it:
First, don't chase the rally. In explosive rallies, most ordinary people who enter are buying the top. Bitcoin isn't the arena you should be anxious about; what you should worry about is "your money losing value" itself.
Second, don't use leverage. Whatever you invest in, remember this first: any direction that requires borrowing dozens of times your capital is risking your "life savings." Every one of those 180,000 liquidated people thought they could get out in time.
Third, invest your time in skills that won't "liquidate." If you must bet on the future, bet on certainties—like learning to use AI to do your job better or build real value in a side hustle. The 2% AI adoption window is far friendlier to ordinary people than a $74,000 Bitcoin.
Remember:Don't let the noise of "others getting rich" disrupt your own rhythm.
Conclusion
Bitcoin surged 12% in 3 days, hitting $74,000—it's quite a spectacle.
But the spectacle belongs to others; among the 180,000 liquidated, some may have dreamed of getting rich overnight.
When ordinary people face a surging market, the best move isn't to rush in, but to step back and ask:Do I have the ability to handle it, or am I just chasing "opportunities" others are talking about?
Money will depreciate, and opportunities will arise, butcognition never expires. Spending your time improving your understanding and real skills will always pay off more than chasing a surging number.
Finally, here's a question for you: when you see the news "Bitcoin surges," is your first reaction "Should I get on board?" or "Why is it rising, and who's footing the bill behind the rise?"
Content Note: The Bitcoin market data in this article (gains from 2026-08-19 to 21, 24-hour liquidations of 180,000 people/over $3 billion) is sourced from public financial reports including Securities Times, 21st Century Business Herald, and Sina Finance, collected on 2026-08-22. Market data is rolling and serves only as background context; it does not constitute a judgment on future trends. Saylor's views and figures (7% annual dollar depreciation, 33% annualized Bitcoin return, 12% gold return, 2% household AI adoption) come from The Diary Of A CEO podcast interview (released 2026-08-06, as stated by the guest). This article is opinion-based content aimed at cognitive education and risk awareness, and does not constitute any investment advice; for investment matters, please consult professional institutions and be mindful of risks.