Bitcoin News Today: A $2 Billion Whale Move Shakes Crypto, Sends Bitcoin Into $100 Billion Freefall

Bitcoin experienced a sharp price drop, referred to as a "flash crash," in early August 2025, losing over $4,000 in value within a short period. The sudden sell-off was attributed to a large holder, or "whale," dumping 24,000 bitcoin—worth over $2 billion—into the Hyperunite trading platform. These coins had not been moved in more than five years, suggesting a strategic and well-timed liquidation [1]. The move caused significant disruption in the broader crypto market, with around $100 billion in market value evaporating within 24 hours [2].

Experts noted that the dump primarily moved liquidity from Bitcoin to Ethereum, with over $2 billion of the proceeds reinvested into ether. A portion of these funds—approximately $1.3 billion—was staked, indicating a shift in investor preference toward Ethereum-based assets [2]. Jacob King, CEO of WhaleWire, attributed the panic cascade to the whale's actions, highlighting the rapid market reaction as other traders joined the sell-off [1].

The flash crash occurred amid a broader bullish trend for Bitcoin, which had surged earlier in the week due to comments from Federal Reserve Chair Jerome Powell suggesting the possibility of interest rate cuts. However, the sudden drop brought Bitcoin prices down to around $112,692, hitting a low of $110,500 at one point [2]. Analysts remain divided on whether the event signals the start of a larger bearish trend or a temporary correction. While some, such as Alex Krüger, suggest that the price could rebound once short-term momentum clears and Bitcoin moves above $113,500, others like Vijay Boyapati view the whale selling as a healthy part of Bitcoin’s monetization cycle [2].

The broader cryptocurrency market was not immune to the fallout. Ethereum, the second-largest cryptocurrency by market capitalization, experienced a record-breaking surge in the days leading up to the Bitcoin crash. ETH prices surpassed $4,900 for the first time since 2021, entering a phase of price discovery with no significant historical resistance to constrain the upward movement [3]. Analysts attributed the strength in Ethereum to dwindling exchange reserves, which have reduced the immediate supply available for selling, and the increasing adoption of U.S. spot Ethereum ETFs [4].

The flash crash has also sparked discussions about market coordination and the influence of large institutional players. Vincent Liu, CIO at Kronos Research, suggested that the event was more likely the result of multiple large-scale sellers, including institutional actors, rather than a single whale [1]. This perspective aligns with the broader trend in crypto markets, where liquidity is increasingly concentrated among a small group of participants capable of influencing prices on a large scale [2].

As the market digests the recent volatility, traders and investors are closely watching key price levels and liquidity conditions. The Bitcoin price is currently near critical support at $113,000, and any further downward movement could trigger more widespread selling in both Bitcoin and altcoin markets. On the other hand, if buyers step in to absorb the sell pressure, Bitcoin could stabilize and potentially resume its upward trajectory. The coming days will be crucial in determining whether this flash crash marks a turning point or a temporary blip in the ongoing crypto bull run.

Source: [1] title1 (https://www.forbes.com/sites/digital-assets/2025/08/25/bitcoin-price-flash-crash-panic-suddenly-wipes-100-billion-from-crypto-market/) [2] title2 (https://finance.yahoo.com/news/bitcoin-whale-sells-24-000-061435431.html) [3] title3 (https://www.coindesk.com/markets/2025/08/24/as-eth-breaks-above-usd4-900-analyst-sums-up-crypto-market-btc-is-exhausted-eth-isn-t) [4] title4 (https://finance.yahoo.com/news/ethereum-jumps-record-price-move-184709473.html)