Bitcoin News Today: Bitcoin Whales Trigger Crash, but Bulls Eye $118K Breakout

Bitcoin is navigating a pivotal phase as recent market dynamics suggest both short-term volatility and a potential long-term bullish trajectory. On August 25, 2025, the cryptocurrency faced a flash crash triggered by the sale of 24,000 BTC by a large whale. This dumping event pushed the price down to around $112,692, reflecting a broader trend of whale activity affecting market liquidity and price stability [1]. The transaction, valued at approximately $2.7 billion, was directed to the trading platform Hyperunite and marked a significant portion of the whale’s holdings, which are estimated at over $17 billion in Bitcoin [1].

The impact of such large-scale sales is evident in the broader market response. As whales offload their holdings, they create cascading sell-offs, further pressuring the price. Jacob King, CEO of WhaleWire, noted that the initial whale sale triggered a panic cascade, causing other traders to sell off their positions. Much of the liquidity has been redirected into Ethereum, with over $2 billion moved into ETH and $1.3 billion staked in the process [1].

On-chain indicators suggest that while the immediate outlook is mixed, there are signs of potential stabilization. The Relative Strength Index (RSI) for Bitcoin has entered oversold territory, though no definitive reversal signals have emerged. Analysts like Alex Krüger and Vijay Boyapati have offered cautiously optimistic views, with Krüger suggesting a potential rebound above $113,500, while Boyapati frames the whale activity as a necessary step toward full monetization of Bitcoin [1]. These perspectives highlight a market that is recalibrating but not necessarily entering a bearish phase.

Looking ahead, several technical and on-chain signals are positioning Bitcoin for a potential bullish breakout. The MVRV Z-Score, a metric comparing market value to realized value, has dipped below neutral levels, historically indicating undervaluation or a trend shift. Analysts suggest that a decisive move above $118,000 could confirm renewed bullish momentum and potentially open the door to higher liquidity zones around $122,000 [3]. Key resistance levels between $117,000 and $118,000 remain critical for the price to break into a new upward phase.

Market sentiment is also being shaped by macroeconomic and institutional factors. Bitcoin’s role as an inflation hedge is gaining traction, particularly as global debt levels rise and central banks continue to adjust monetary policy. Eric Trump, a prominent figure in the crypto space, has publicly expressed bullish expectations, predicting Bitcoin could reach $175,000 by year-end and eventually surpass $1 million [4]. These forecasts are aligned with broader institutional interest, as companies like Metaplanet and Strategy continue to expand their Bitcoin holdings.

Institutional adoption is further reinforced by regulatory developments in Asia, where countries like Japan and Hong Kong are actively shaping frameworks to attract digital asset firms. These moves, coupled with growing interest from traditional financial players, underscore Bitcoin’s evolving role in the global financial system. Meanwhile, the upcoming Bitcoin halving in 2025 is expected to reduce the rate of new supply entering the market, potentially contributing to upward price pressure [3].

As the market absorbs these factors, Bitcoin’s immediate trajectory will depend on its ability to stabilize and consolidate above key support levels. With whale activity, macroeconomic conditions, and on-chain metrics all pointing to a potential shift, investors are advised to monitor both short-term volatility and long-term accumulation trends. The coming weeks will be crucial in determining whether Bitcoin can sustain a bullish breakout and cement its position as a leading digital asset in a rapidly evolving market landscape.

Source:

[1] Bitcoin Whale Sells 24,000 BTC Triggering Flash Crash, Still Holds Over $17B Worth BTC (https://finance.yahoo.com/news/bitcoin-whale-sells-24-000-061435431.html)

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

[3] Bitcoin Targets $118K as MVRV Signals Bullish Shift in Market Cycle (https://bravenewcoin.com/insights/bitcoin-btc-price-prediction-bitcoin-targets-118k-as-mvrv-signals-bullish-shift-in-market-cycle)

[4] 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)

[5] Bitcoin Price Chart in Euros (BTC/EUR) (https://bitflyer.com/en-eu/bitcoin-chart)