Bitcoin News Today: A $2.7 Billion Whale Dump Sparks Panic, But Bulls Hold Fast Below $110K

Bitcoin fell below $110,000 as a major whale dumped over 24,000 BTC, valued at $2.7 billion, triggering widespread panic in the crypto markets. The sell-off, which occurred on a typically low-liquidity weekend, sent Bitcoin’s price tumbling from a high of $115,000 to around $111,000 within hours, according to onchain data shared by analyst Sani. This large-scale transaction was attributed to a long-dormant wallet that had not moved its coins in over five years, indicating a strategic shift in asset allocation as the seller moved into Ethereum [3].

The sudden selloff had a cascading effect on the broader crypto market. Ether, which had just hit a record high above $5,000, quickly lost 7.75% of its value, raising concerns about the sustainability of the recent bullish momentum [3]. The sell-off also led to over $715 million in leveraged positions being liquidated, with traders on platforms such as Binance bearing the brunt of the volatility [4]. Analysts noted that the thin trading volumes during the weekend amplified the impact of the whale’s actions, leading to sharp price declines [3].

Despite the immediate fallout, onchain metrics suggest that the current drawdown may not signal the end of the bullish cycle. Analyst Merlijn The Trader pointed out that none of the 30 widely followed peak indicators for Bitcoin have turned red, and many remain in neutral territory [1]. For example, the Puell Multiple, a metric that gauges miner profitability relative to historical levels, stood at 1.39—well below the 2.2 threshold that typically indicates overheating before past price peaks [1]. Similarly, the MVRV Z-Score, which compares Bitcoin’s price to the average cost basis of its holders, remained in neutral territory rather than at the extreme levels seen at previous tops [1].

The current price action also reflects a classic capitulation phase, where newer investors are selling under pressure while more seasoned holders remain unfazed [1]. According to data shared by analyst CrazzyBlockk, new investors—those holding Bitcoin for less than a month—are sitting on an average unrealized loss of -3.50%, while the Short-Term Holder (STH) cohort, who have held for one to six months, remain profitable with an aggregate unrealized gain of +4.50% [1]. This shift is being described as a "bullish structural development," as it suggests the weakest hands are being flushed out of the market, potentially building a stronger support base for future price increases [1].

The market’s reaction to the whale selloff also highlights the ongoing tension between macroeconomic expectations and onchain dynamics. Following Federal Reserve Chair Jerome Powell’s dovish speech at Jackson Hole, crypto markets initially surged on the hope of a September rate cut [4]. However, traders later reassessed the likelihood of such a move as the speech’s signals proved to be less definitive than expected [4]. Despite this, the CME FedWatch tool still places the odds of a rate cut at around 87%, while the crypto betting platform Polymarket reflects a near 81% probability [4]. These expectations will likely remain a key driver of investor sentiment in the coming weeks.

Moving forward, analysts are closely watching Bitcoin’s ability to reclaim key support levels. A rebound above the 20-week exponential moving average (EMA), currently near $108,000, would be a critical technical sign that the bearish correction is losing steam [1]. This level has historically acted as a dynamic support during bull market phases. If Bitcoin fails to hold above this level, the next major support target lies near $105,000, with a breakdown below the 20-week EMA potentially leading to a deeper correction toward the 50-week EMA near $95,300 [1].

Source:

[1] Was $124K the top? Bitcoin's price peak signals tell a different story (https://cointelegraph.com/news/was-124k-the-top-bitcoin-price-peak-signals-different-story)

[2] Panicked Traders Brace For $100000 Bitcoin And $4000 ... (https://www.forbes.com/sites/digital-assets/2025/08/26/bitcoin-price-flash-crash-panic-suddenly-wipes-100-billion-from-crypto-market/)

[3] Why Bitcoin Whale's Huge Selloff Spooked Traders (https://cryptonews.com/exclusives/why-bitcoin-whales-huge-selloff-spooked-traders/)

[4] Crypto markets stumble as dormant whale dumps $2.7bn in ... (https://www.dlnews.com/articles/markets/crypto-market-stumble-whale-2bn-bitcoin-dump-fed-rate-jitter/)