Bitcoin News Today: Bitcoin's $2.7B Whale Sale Sparks $550M in Crypto Liquidations

Bitcoin's price experienced a sharp decline over the weekend, dropping to a six-week low of $110,600 from its mid-week high of $117,000. The sudden sell-off was triggered by a massive liquidation event, with a single whale offloading 24,000 Bitcoin—valued at $2.7 billion—into thin liquidity. This move caused widespread liquidations across the market, wiping out over $550 million in positions, with nearly $300 million in Bitcoin and $250 million in Ethereum (ETH) cleared in under 24 hours [1]. The abrupt price drop erased gains driven by optimism from Federal Reserve Chair Jerome Powell’s dovish comments at the Jackson Hole symposium, which had previously pushed Bitcoin above $117,000 [3].

The flash crash highlighted the fragility of leveraged positions in the crypto market. Data from CoinGlass showed that over $300 million in long positions were liquidated in a single hour, with longs accounting for roughly 90% of the total. The single largest liquidation occurred on OKX, valued at over $12 million, as traders scrambled to close their positions amid the volatility [1]. The sell-off also triggered a rotation of capital from Bitcoin to Ethereum, with reports showing significant inflows into ETH. One entity alone rotated $2.04 billion worth of Bitcoin into Ethereum, with over $1.3 billion subsequently staked [4]. Analysts attributed the shift to Ethereum’s smaller market cap, positioning it to potentially benefit more from any forthcoming monetary expansion tied to Fed rate cuts.

Technical analysis of Bitcoin's price action reveals a bearish near-term outlook. Bitcoin has struggled to reclaim the $117,000 resistance level, a key threshold for signaling a sustained bullish trend. The Relative Strength Index (RSI) remains below 50, the MACD is negative, and the Average Directional Index reflects weak trend conviction. Additionally, the price is confined within a descending channel since mid-August, raising concerns about accumulation rather than genuine buying interest [3]. Institutional flows have also weakened, with ETF inflows plummeting to their lowest level since April and whale activity shifting toward profit-taking. This has coincided with Bitcoin’s retreat from its summer high of $124,000, signaling a cooling in speculative demand [3].

On the macroeconomic front, the Fed’s evolving stance continues to influence market sentiment. After Powell’s dovish remarks, the odds of a September rate cut rose to nearly 90%. However, subsequent market reactions have been mixed, with Bitcoin failing to maintain the bullish momentum triggered by the initial optimism. Traders are now focused on the upcoming Personal Consumption Expenditures (PCE) index release as a key indicator for the Fed’s next move. Market observers caution that while the current rate-cut narrative supports risk assets, the broader economic data—particularly inflation and employment figures—will be critical in determining the trajectory of the bull run [6].

Looking ahead, Bitcoin faces a crucial test of support at $111,000 and $105,000. A successful hold above $113,000 could pave the way for a rebound toward $117,000, but a breakdown below the $111,000 level could extend the correction to $100,000. In the medium to long term, the bull case remains intact, supported by the 200-day moving average near $100,800 and continued institutional interest. However, near-term caution is warranted as the market digests whale activity and broader macroeconomic developments. Analysts remain divided on whether the bull market has peaked, with some citing technical indicators and whale behavior as signs of a potential cycle top, while others remain optimistic about Bitcoin's longer-term prospects [6].

Source:

[1] $300M in Longs Liquidated in 1 Hour: Bitcoin Crashes ... (https://cryptopotato.com/300m-in-longs-liquidated-in-1-hour-bitcoin-crashes-ethereum-rejected-at-5k/)

[2] Bitcoin News: Eric Trump's BTC Price Predictions ... (https://www.coindesk.com/business/2025/08/23/eric-trump-makes-bitcoin-price-predictions-as-he-reportedly-gets-ready-to-visit-metaplanet)

[3] Bitcoin Price Forecast: BTC-USD Holds $114K, Eyes $117K ... (https://www.tradingnews.com/news/bitcoin-price-forecast-btc-usd-struggles-at-117k-usd-ressitance-whule-whales-lock-in-profit)

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

[5] Bitcoin Flash Crash Triggers $550M in Sunday ... (https://www.coindesk.com/markets/2025/08/25/bitcoin-flash-crash-triggers-usd550m-in-sunday-liquidations-as-ether-rotation-builds)

[6] 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)