Bitcoin News Today: Whales Trigger $100B Crypto Shock as Bitcoin Grapples with Bearish Momentum

Bitcoin’s recent sell-off pattern has drawn comparisons to its behavior in late 2021, with onchain data and market analysis highlighting the role of large holders and structural trends in shaping the cryptocurrency’s price dynamics. Over the weekend, Bitcoin experienced a sharp decline of approximately $4,000 within minutes, wiping out around $310 million in long positions. This sell-off was attributed to a single whale dumping 24,000 BTC, valued at over $2.7 billion, into exchanges like Hyperunite. The transaction, which included coins dormant for over five years, sent shockwaves through the broader crypto market, reducing the total market cap by an estimated $100 billion within 24 hours [1].

The sudden outflow of liquidity has raised concerns among analysts about the influence of large, long-term holders on Bitcoin’s price. According to data from Lookonchain, a trader who had held 100,784 BTC for over seven years initiated a partial liquidation, moving $2.59 billion worth of BTC into Hyperliquid. A significant portion of the proceeds was redirected to Ethereum (ETH) as the seller opened long positions in altcoins [2]. Analysts have noted that such large-scale transactions are often indicative of coordinated actions involving institutional players or multiple whales, rather than a single market participant [1].

The sell-off has pushed Bitcoin’s price below key technical indicators, including the Ichimoku Cloud and the 50-day moving average, signaling a shift in momentum toward the bears. On the 4-hour chart, Bitcoin has been trading within a descending channel, with the Awesome Oscillator (AO) deep in negative territory. These metrics suggest that sellers currently hold the upper hand, and the price could test support levels as low as $105,400 or even $93,571 in a worst-case scenario [2]. Additionally, Bitcoin’s dominance (BTC.D) has fallen to 58.21%, its lowest level since January, reflecting a growing allocation of capital into altcoins [2].

Analysts have also drawn parallels between the current market behavior and Bitcoin’s performance in late 2021, when a similar wave of selling by early investors coincided with broader market corrections. Willy Woo, a prominent crypto analyst, pointed out that OG whales—those who bought Bitcoin at or below $10—have a significant influence on price dynamics due to the substantial capital required to absorb each BTC they sell. These early holders, many of whom are sitting on 10,000x gains, are still in the process of gradually liquidating their positions, which may prolong the current bearish phase until their selling pressure subsides [5].

Meanwhile, macroeconomic factors are also contributing to the cautious outlook. The recent pullback coincides with Bitcoin’s historically weaker seasonality in August and September, a period often marked by profit-taking and reduced risk appetite. With the U.S. dollar weakening and the impact of spot Bitcoin ETFs starting to wane, analysts are closely watching whether institutional demand will stabilize or if the market will continue to consolidate within a narrower range [3]. The upcoming Jackson Hole symposium and U.S. inflation data will likely serve as key catalysts for further price direction [4].

Despite the short-term bearish pressure, some analysts remain cautiously optimistic. If Bitcoin can hold above $105,000, it may find renewed support as institutional buyers step in or if macroeconomic conditions shift in favor of risk-on assets. However, a breakdown below this level could lead to a deeper correction, with $92,000–$89,000 emerging as the next critical demand zone. The market’s next moves will likely be dictated by the interplay between onchain selling pressure and broader macroeconomic developments.

Source:

[1] Forbes Digital Assets (https://www.forbes.com/sites/digital-assets/2025/08/25/bitcoin-price-flash-crash-panic-suddenly-wipes-100-billion-from-crypto-market/)

[2] CCN.com (https://www.ccn.com/analysis/crypto/bitcoin-price-collapse-btc-signals-trouble-crypto-recovery-uncertain/)

[3] Cointelegraph (https://cointelegraph.com/news/bitcoin-holders-distribute-as-dollar105k-becomes-btc-s-last-stronghold)

[4] CoinDesk (https://www.coindesk.com/markets/2025/08/21/asia-morning-briefing-btc-demand-cools-while-crypto-capital-is-getting-more-selective-okx-s-gracie-lin-warns)

[5] Yahoo Finance (https://finance.yahoo.com/news/bitcoin-not-rising-quickly-enough-203110676.html)