Bitcoin News Today: Bitcoin's $2.7B Flash Crash: A Whale's Move, A Market's Reckoning

A significant Bitcoin whale recently offloaded 24,000 BTC in a single transaction, valued at $2.7 billion, triggering a flash crash that sent Bitcoin’s price down by approximately $4,000 within minutes. The whale’s move marked one of the largest single-volume sales in recent memory and was attributed as a contributing factor to the drop in BTC to a key support zone near $113,000 [3]. Despite the massive sell-off, the whale still holds a remaining 152,874 BTC, valued at over $17 billion, indicating that further large-scale sales are possible [5].

According to on-chain analysts, the dumped 24,000 BTC was transferred to the decentralized trading platform Hyperunite over multiple transactions, with 18,142 BTC — worth $2 billion — subsequently rotated into Ethereum (ETH), resulting in the purchase of 416,598 ETH and the staking of 275,500 ETH, worth $1.3 billion. This strategic pivot suggests a long-term reallocation of capital from Bitcoin to Ethereum, aligning with broader market trends where institutional investors and large holders are increasingly favoring Ethereum as a staking and investment asset [3].

Bitcoin OG whale activity has long influenced price dynamics, and this instance was no exception. Analyst Willy Woo highlighted that the oldest Bitcoin whales, who accumulated their holdings in 2011 at extremely low prices, continue to control a concentrated portion of the supply. As a result, each BTC sold requires over $110,000 in fresh capital to absorb, contributing to the sluggish upward movement of Bitcoin’s price in this bull cycle [5]. The whale’s actions underscore the broader phenomenon of whale-driven price volatility, where large-scale profit-taking can have outsized impacts on market sentiment and liquidity.

The whale's move also triggered a cascading effect in the market, as traders reacted to the sudden influx of sell pressure. As Jacob King of WhaleWire noted, the whale’s initial selling activity “triggered a panic cascade,” amplifying the flash crash and leading to further price declines [3]. However, industry experts caution that such short-term volatility does not necessarily signal the end of the bull market. Alex Krüger of Aike Capital noted that Bitcoin could stabilize and rebound once short-term momentum clears and the price moves above the $113,500–$114,000 range. Vijay Boyapati, a well-known Bitcoin enthusiast, also emphasized that whale selling is a natural and healthy part of the Bitcoin monetization cycle [5].

In parallel, Ethereum has seen significant strength over the past month, outperforming Bitcoin in terms of price growth and institutional interest. The whale’s shift from BTC to ETH aligns with broader market dynamics, where Ethereum’s upcoming ETF staking approval and growing corporate adoption are driving increased demand. Institutional investors have been net buyers of ETH, with ether ETFs attracting larger inflows than their Bitcoin counterparts in August. This trend, combined with Ethereum’s growing ecosystem and utility in decentralized finance (DeFi), has positioned ETH as a top-performing altcoin, with recent price action surpassing $4,946 to set a new all-time high [4].

Bitcoin’s dominance in the cryptocurrency market has dipped slightly from 61% at the start of the month to 57.94%, indicating a shift in investor preference toward altcoins. Ethereum’s strong performance and the broader capital reallocation from BTC to ETH suggest that altcoin season may be gaining momentum. As the market continues to monitor macroeconomic indicators like the U.S. nonfarm payrolls and initial jobless claims, further volatility in both Bitcoin and Ethereum is expected. However, with Ethereum’s fundamentals strengthening and Bitcoin remaining near key support levels, the long-term outlook for both assets remains cautiously optimistic [6].

Source:

[1] BTC bull run over at $111K? 5 things to know in Bitcoin this ... (https://cointelegraph.com/news/btc-bull-run-over-at-111k-5-things-bitcoin-this-week)

[2] Ethereum Hits Record, Cryptos Reverse On Bitcoin Flash ... (https://www.investors.com/news/ethereum-price-record-high-bitcoin-cryptocurrency-fed-speech/)

[3] Bitcoin Whale Sells 24,000 BTC Triggering Flash Crash, Still ... (https://finance.yahoo.com/news/bitcoin-whale-sells-24-000-061435431.html)

[4] $11B Bitcoin Whale closes $450M ETH long, scoops up ... (https://cointelegraph.com/news/11b-bitcoin-whale-closes-450m-eth-long-108m-ether)

[5] Bitcoin OG whales to blame for BTC's painful rise: Willy Woo (https://cointelegraph.com/news/bitcoin-flash-crash-blamed-crypto-whales-big-eth-trades)

[6] Ether pulls back to start the week after hitting a fresh record ... (https://www.cnbc.com/2025/08/24/crypto-market-today.html)

[7] Bitcoin slips to $112700 amid continued whale migration to ... (https://www.theblock.co/post/368060/bitcoin-under-112700-whale-migration)