Bitcoin News Today: Bitcoin Tumbles 2.2% in 9-Minute Flash Crash as Whale Sells Trigger $550M Liquidations

The global cryptocurrency market experienced a sharp downturn in late August 2025, with Bitcoin and Ethereum both falling to multi-week lows amid heightened selling pressure from large investors and a looming monthly derivatives expiry event [1]. Bitcoin’s price fell below $111,000, with a significant portion of the decline attributed to a dormant whale unloading 24,000 BTC worth $2.7 billion on major exchanges [4]. This mass sell-off triggered over $550 million in liquidations on Sunday alone, with Coinglass data showing more than $664 million in total liquidations within a 24-hour period [6].

Ethereum, which had recently reached a record high of $4,953, failed to sustain its bullish momentum and dropped to $4,526 by the time of reporting. The CoinDesk 20 (CD20) Index, which tracks the performance of the top 20 cryptocurrencies, fell 3% within a day, underscoring the broad-based nature of the selloff [1]. Altcoins like XRP, BNB, Solana, and Cardano saw declines ranging from 4% to 7%, while meme coins such as Dogecoin and Shiba Inu dropped over 5% and 4%, respectively [1].

A notable shift in capital from Bitcoin to Ethereum was observed, with a major whale exchanging 22,769 BTC (worth approximately $2.59 billion) for 472,920 ETH in the previous five days [6]. This trend is believed to be driven by institutional investors rotating assets into Ethereum, with some analysts suggesting this could signal the beginning of an "altcoin season" [1]. Additionally, Ethereum treasury companies like BitMine Immersion and SharpLink Gaming continued to accumulate ETH, reinforcing bullish sentiment around the token [6].

The market is now awaiting key catalysts that could influence its direction in the coming weeks. Deribit’s monthly Bitcoin options expiry, set for this Friday, includes $11.8 billion in open interest, with the maximum pain point at $116,000 and a put-call ratio of 0.88 [1]. Meanwhile, Ethereum options worth $3.1 billion are set to expire, representing 26% of total positions and with a maximum pain point at $3,800 [1]. These events coincide with the release of the U.S. PCE inflation data on August 29, which traders are watching closely as it will determine whether the Federal Reserve can maintain its rate-cut expectations in September.

The recent volatility was not caused by macroeconomic news or regulatory actions but rather by large-scale selling from influential holders, highlighting the crypto market’s continued vulnerability to whale-driven pressure [7]. On-chain analyst Willy Woo noted that Bitcoin’s flash crash involved a nearly 2.2% drop in nine minutes, with prices bottoming out at $112,174 [8]. Despite the losses, Ethereum’s ability to hold above $4,600 indicates growing institutional confidence in the asset [6].

As the market prepares for the options expiry and PCE data, the coming days will be critical in determining whether Ethereum can lead a broader recovery or if Bitcoin’s continued volatility will remain a drag on investor sentiment. With major whales still active in reshaping market dynamics and altcoins displaying mixed reactions, the path forward remains uncertain.

Source:

[1] Here Is Why Bitcoin's Flash Crash May Signal Altcoin Season (https://www.coindesk.com/daybook-us/2025/08/25/here-is-why-bitcoin-s-flash-crash-may-signal-altcoin-season-crypto-daybook-americas)

[4] Why Is Crypto Down Today? BTC USD Crashes, ETH ... (https://99bitcoins.com/news/presales/why-is-crypto-down-today-eth-usd-rejects-5k-as-btc-usd-drops-in-liquidation-event/)

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

[6] Why Is Crypto Down Today? Whale Unload 25k Bitcoins As ... (https://99bitcoins.com/news/altcoins/live-latest-crypto-updates-25-august-why-is-crypto-down-today-whale-unload-25k-bitcoins-as-ethereum-price-hits-new-ath-best-crypto-to-buy-right-now/)

[7] Bitcoin Flash Crash Triggers $550M in Sunday Liquidations ... (https://uk.finance.yahoo.com/news/bitcoin-flash-crash-triggers-550m-065050374.html)

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