Bitcoin News Today: Bitcoin Whales Triggered $550M Crash, Then Shifted $2B to Ethereum

A major Bitcoin whale offloaded 24,000 BTC during the weekend, valued at $2.7 billion, triggering a sharp price decline and a flash crash. The sell-off caused Bitcoin to dip below $111,000, with a brief low of $110,500 observed on CoinMarketCap. The transaction coincided with significant market liquidations, wiping out over $550 million across Bitcoin and Ethereum positions. According to on-chain analysis, the seller, still holding 152,874 BTC worth more than $17 billion, transferred the coins to the Hyperunite trading platform. Sani, a Bitcoin on-chain analyst, noted that the whale had held these BTC for over five years before the recent activity [1].

The sudden large-scale sale coincided with thin liquidity conditions and contributed to the flash crash. Jacob King of WhaleWire stated that the whale’s actions triggered a cascade of panic selling by other traders, exacerbating the downward spiral. This liquidity crunch was further compounded by a prior week of increased long positions and leverage. The price dipped by over 2% within ten minutes, with Bitcoin eventually stabilizing near $112,800. Analysts attributed the crash to the whale's strategic timing and the fragile state of market positioning, especially during a low-volume weekend [2].

In the aftermath of the Bitcoin sell-off, a significant portion of the proceeds was redirected into Ethereum. Data indicates that two entities redeployed $2 billion worth of Bitcoin into Ethereum, with 275,500 ETH—valued at $1.3 billion—already staked. The shift in capital reflects broader market sentiment favoring Ethereum's growing utility in stablecoins, tokenization, and smart contracts. Analysts like Jeff Mei from BTSE and Samir Kerbage from Hashdex noted that Ethereum’s smaller market cap compared to Bitcoin could result in a more pronounced response to potential Federal Reserve rate cuts and increased liquidity in the system. This capital reallocation underscores a structural shift in institutional and whale-level positioning from Bitcoin to Ethereum [5].

Despite the volatility, some experts view the sell-off as part of a natural maturation process for the Bitcoin market. Vijay Boyapati, a software engineer and crypto economist, emphasized that the selling by whales is a necessary step for the full monetization of Bitcoin. He argued that such activity is not inherently bearish but rather a sign of market evolution, given the finite supply of BTC held by large holders. Alex Krüger of Aike Capital noted that Bitcoin is likely to regain upward momentum once short-term volatility subsides and the price moves above key resistance levels near $113,500 to $114,000 [1].

Options data also reveal ongoing bullish sentiment despite the recent drawdown. On Deribit, traders have maintained bullish positions with strike prices ranging from $135,000 to $155,000, indicating confidence in a longer-term price recovery. Sean Dawson of on-chain options platform Derive highlighted that the market is not shaken by the correction and that the fundamentals remain intact. While the RSI-7 currently shows oversold conditions, there are no definitive reversal signals yet. Nonetheless, the broader macroeconomic environment, including dovish statements from Fed Chair Jerome Powell, continues to support a bullish narrative for cryptocurrencies [2].

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] What Bitcoin's Weekend Dip Means for the Crypto Bulls (https://decrypt.co/336618/what-bitcoins-weekend-dip-means-for-the-crypto-bulls) [3] Bitcoin Reverses Powell Spike With a Flash Crash as... (https://www.coindesk.com/markets/2025/08/25/bitcoin-reverses-powell-spike-with-a-flash-crash-as-options-market-signals-jitters-ahead) [4] Two ancient Bitcoin whales staked 275500 ETH, worth... (https://www.chaincatcher.com/en/article/2200108) [5] Whale Dump Sends Bitcoin to $110671, Erases $3 Billion... (https://thedefiant.io/news/markets/whale-dump-sends-bitcoin-to-110671-erases-3-billion-open-interest-0c898063) [6] 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) [7] Ethereum Hits Record, Cryptos Reverse On Bitcoin Flash... (https://www.investors.com/news/ethereum-price-record-high-bitcoin-cryptocurrency-fed-speech/) [8] Bitcoin Drops to $112K as Whales Rotate Into Ethereum (https://coinmarketcap.com/academy/article/bitcoin-drops-to-dollar112k-as-whales-rotate-into-ethereum)