Bitcoin News Today: Bitcoin Whale Sells $2.7 Billion BTC Sending Price Down 2.2% in Hours

A major Bitcoin whale executed a massive sale of 24,000 BTC, valued at approximately $2.7 billion, on August 21, 2025, triggering a sharp price drop of over $4,000 in under ten minutes. The sell-off sent Bitcoin briefly below $112,000, with intraday lows reaching $110,671. The dumped BTC had been dormant for more than five years, indicating a strategic move by a long-term holder. Despite the large liquidation, the whale still retains 152,874 BTC, valued at over $17 billion [1].

The market reaction was immediate and widespread. Traders rushed to offload their positions, deepening the downturn. Bitcoin dropped 2.2% within an hour, falling from $114,666 to $112,174. Ethereum also fell nearly 4%, reaching a low of $4,738. The sale caused roughly $623 million in forced liquidations, with leveraged traders being hit the hardest [4].

In the aftermath, significant capital rotation was observed. Approximately $2 billion moved into Ethereum, with $1.3 billion of that amount staked. Two large entities reportedly acquired 416,598 ETH collectively, while another whale sold 670 BTC, worth $76 million, to open a long ETH position. This reflects a broader trend of investors shifting capital from Bitcoin into Ethereum, particularly into its staking infrastructure [1].

Ethereum prices responded positively, surging above $4,945 shortly after the Bitcoin sell-off. The altcoin’s market dominance increased as capital reallocated from Bitcoin to alternative crypto assets. Ethereum ETFs have also seen stronger inflows than Bitcoin ETFs in recent weeks, further supporting the altcoin’s upward momentum [6].

Analysts have provided mixed interpretations of the whale’s actions. Some view the sale as part of a natural monetization cycle, where older Bitcoin holders—many who accumulated during the 2011 bull run—take profits as prices reach their target levels. Others warn that such large trades can destabilize the market, especially during periods of low liquidity. Bitcoin’s RSI-7 currently stands at 40.72, suggesting oversold conditions but no clear reversal signal yet [1].

The broader implications of this event point to a structural shift in crypto portfolio allocations. As Ethereum continues to gain traction in staking and decentralized finance, Bitcoin faces increasing pressure to maintain its dominance. Whether the recent volatility will lead to a sustained correction or a temporary dip remains uncertain, with key resistance levels and capital flows under close observation by analysts [5].

Source:

[1] title1 (https://finance.yahoo.com/news/bitcoin-whale-sells-24-000-061435431.html)

[2] title2 (https://www.coindesk.com/markets/2025/08/25/bitcoin-reverses-powell-spike-with-a-flash-crash-as-options-market-signals-jitters-ahead)

[4] title4 (https://thedefiant.io/news/markets/whale-dump-sends-bitcoin-to-110671-erases-3-billion-open-interest-0c898063)

[5] title5 (https://cointelegraph.com/news/bitcoin-whales-swap-btc-for-ether-trader-sees-eth-hitting-5-5k-next)

[6] title6 (https://www.theblock.co/post/368060/bitcoin-under-112700-whale-migration)