Bitcoin News Today: Bitcoin's Sell-Off Exposed: Why Whales, ETFs, and Market Timing Collided to Trigger a $4K Drop

Bitcoin experienced a sharp price correction of $4,000 in a short span following a major 24,000 BTC sell-off, pushing its value to $110,600 at the start of the week. This decline followed a brief rebound triggered by dovish remarks from Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium, which initially boosted risk appetite and saw Bitcoin climb to $117,300. However, the momentum faded, and on-chain data revealed broad distribution among Bitcoin holders, with mid-sized wallets driving the sell-off. Analysis from Glassnode showed that all wallet cohorts had shifted into distribution, with the 10–100 BTC group leading the exodus. This synchronized behavior across wallet sizes intensified sell-side pressure, eroding price stability.

The drop in price was compounded by broader market dynamics. Seasonal patterns, particularly during August and September, have historically marked a period of weakness in Bitcoin’s price. This year, the “ghost month” from August 23 to September 21 amplified the bearish sentiment, contributing to a pullback consistent with historical averages. In addition, the post-launch enthusiasm for spot Bitcoin ETFs appears to be waning, with higher-timeframe exhaustion patterns suggesting a distribution phase. The BTC/EUR pair, for instance, has not reached a new all-time high since 2024, indicating that the recent price increases may be more attributable to a weakening U.S. dollar than organic demand.

The sell-off was also exacerbated by large whale activity. According to Lookonchain data, a Bitcoin OG wallet, which holds 100,784 BTC and is worth $11.4 billion, has begun dumping BTC for ETH. Over the past five days, it deposited 22,769 BTC worth $2.59 billion for sale while purchasing 472,920 ETH. This movement contributed to the downward trend in Bitcoin’s price. Moreover, institutional investors added to the pressure, with spot Bitcoin ETFs recording $1.17 billion in outflows last week, the highest since early March. If this trend continues, further corrections could be expected.

Despite the bearish momentum, some data points offer a glimmer of optimism. Japanese investment firm Metaplanet, for example, announced an additional purchase of 103 BTC, bringing its total holdings to 18,991 BTC, indicating ongoing confidence in the asset despite the price decline. Santiment data also noted that the 30-day Market Value to Realized Value (MVRV) metric for Bitcoin has moved closer to a historical reversal zone, currently reading -3.37%. This suggests that Bitcoin may be undervalued, and if all positions were sold at current levels, most traders would face losses.

Looking at technical indicators, Bitcoin found support around the 100-day Exponential Moving Average (EMA) at $110,865 after a 3.94% rally on Friday. However, the price later rejected this level and fell 3.42% to $110,600. If BTC closes below the 100-day EMA on a daily basis, it could continue its decline toward the 200-day EMA at $103,688. The Relative Strength Index (RSI) stands at 40, signaling increasing bearish momentum, while the Moving Average Convergence Divergence (MACD) indicator has shown a bearish crossover, reinforcing the bearish case.

Meanwhile, the altcoin market, particularly projects like Remittix (RTX), has gained traction amid Bitcoin’s volatility. Remittix, a blockchain-based payments project, has seen its presale exceed $20 million, driven by its focus on cross-border remittances and integration with traditional financial systems. The project also announced a partnership with BitMart, a major centralized exchange, which is expected to boost liquidity and accessibility for RTX token holders. With plans to launch a beta wallet in Q3 2025 and a $250,000 token giveaway, Remittix is attracting investor attention as a potential high-utility altcoin in the DeFi space.

Source:

[1] Bitcoin holders 'distribute' as $105K becomes BTC's last ... (https://cointelegraph.com/news/bitcoin-holders-distribute-as-dollar105k-becomes-btc-s-last-stronghold)

[2] Bitcoin Price Drops Again — And Nope, It's Still Not ... (https://bitcoinmagazine.com/markets/bitcoin-price-drops-again-and-nope-its-still-not-because-of-the-fed)

[3] How far could Bitcoin fall before finding support? (https://www.fxstreet.com/cryptocurrencies/news/bitcoin-price-forecast-btc-slides-as-whale-sell-off-outweighs-powells-dovish-remarks-202508251044)

[4] Remittix Presale Skyrockets Past $20M After Revealing ... (https://www.morningstar.com/news/globe-newswire/9515747/remittix-presale-skyrockets-past-20m-after-revealing-first-major-exchange-listing-with-more-to-follow)

[5] Remittix Captures Retail Momentum After Posting 540 ... (https://www.mitrade.com/insights/news/live-news/article-3-1063784-20250823)

[6] BTC to EUR: Bitcoin Price in Euro (https://www.coingecko.com/en/coins/bitcoin/eur)

[7] Bitcoin Price, BTC Price, Live Charts, and Marketcap (https://www.coinbase.com/en-gb/price/bitcoin)

[8] Convert 1 BTC to EUR - Bitcoin price in (https://coincodex.com/convert/bitcoin/eur/)