Bitcoin News Today: Ethereum Gains Institutional Momentum as Bitcoin Faces Whale-Driven Turmoil

Bitcoin and Ethereum have continued to exhibit divergent performance trends in recent weeks, with Ethereum maintaining a strong upward trajectory despite Bitcoin's recent volatility. On Sunday, Ethereum briefly reached an all-time high of $4,954.81 before retreating to $4,776.46, a decline of less than 1%. Meanwhile, Bitcoin faced significant downward pressure, falling to as low as $110,779.01, a level not seen since July 10. The flagship cryptocurrency last traded at approximately $112,000, marking a nearly 2% decline from its recent high of $124,496 on August 13.

The shift in market leadership has been largely attributed to Ethereum's growing appeal among institutional investors and corporate entities. Ether's surge has been fueled by regulatory tailwinds, increased interest in stablecoins, and a new wave of corporate buying. For instance, Bitmine Immersion Technologies, a firm chaired by Wall Street economist Tom Lee, recently acquired $45 million worth of Ether. This trend is further supported by the emergence of Ethereum ETFs, which have seen consistent inflows, and the growing practice of staking Ether, with nearly a third of supply currently locked in this mechanism.

Ben Kurland, CEO of DYOR, emphasized the changing dynamics of the market, noting, “The buyers are finally bigger than the sellers.” He highlighted that the maturation of scaling solutions and the potential for lower capital costs due to anticipated rate cuts have transformed the $4,000 level from a resistance point into a foundational support level for Ethereum's future.

However, Bitcoin's performance has been more volatile. A large whale selling 24,000 Bitcoin over the weekend—worth approximately $2.7 billion—triggered a flash crash and caused liquidations across the market. This massive sell-off dragged Bitcoin’s price below $113,000, a level that had previously been supported by optimistic market sentiment. The whale, identified by on-chain analyst Sani, sent the entire 24,000 BTC balance to Hyperunite and is continuing to sell, with 152,874 BTC still in their possession, valued at over $17 billion.

Jacob King, CEO of WhaleWire, noted that this large sell-off “triggered a panic cascade,” as other traders began selling, amplifying the downward pressure on Bitcoin’s price. The move to Ethereum is also notable, with a separate whale selling 18,142 BTC for Ethereum, and a total of 416,598 ETH ($1.98 billion) being purchased, with 275,500 ETH of that amount staked.

Bitcoin’s recent struggles reflect broader challenges in the crypto market, including the fact that the supply of Bitcoin is largely concentrated among large whales who acquired their holdings in 2011 at much lower prices. As Willy Woo, a prominent Bitcoin analyst, explained, “It takes $110k+ of new capital to absorb each BTC they sell.” This dynamic significantly affects the capital required to sustain price increases in the current market environment.

Ethereum’s dominance, in contrast, is supported by a more diversified and growing base of institutional and corporate demand. The emergence of Ethereum-based stablecoins and the maturation of its ecosystem have created a more resilient foundation for its price action. Analysts have noted that Ethereum is not just benefiting from speculative demand but is increasingly being treated as a stakable and yield-generating asset by public companies.

While Bitcoin faces short-term headwinds, some industry experts believe the market is adjusting to a new phase in the bull cycle. Alex Krüger of Aike Capital suggested that once short-term momentum clears, Bitcoin could find support above $113,500–$114,000. Vijay Boyapati echoed this sentiment, noting that the current whale activity, while disruptive in the short term, is a necessary step toward full monetization.

Looking ahead, the continued divergence between Bitcoin and Ethereum could reshape market dynamics and influence investor sentiment. While Bitcoin remains the largest cryptocurrency by market cap and a benchmark for the broader digital asset class, Ethereum’s growing institutional adoption and technological advancements position it as a formidable contender in the evolving crypto landscape.

Source:

[1] Crypto Market Today (https://www.cnbc.com/2025/08/24/crypto-market-today.html)

[2] 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)

[3] Bitcoin Price Today Slips Below $113k, Near 6-Wk Low Despite Fed Cut Bets (https://www.investing.com/news/cryptocurrency-news/bitcoin-price-today-slips-below-113k-near-6wk-low-despite-fed-cut-bets-4208087)

[4] A Comparative Analysis between BTC and ETH (https://www.tokenmetrics.com/blog/bitcoin-vs-ethereum?74e29fd5_page=2)

[5] Do You Believe ETH Market Cap Will Ever Eclipse BTC (https://www.reddit.com/r/CryptoCurrency/comments/1mz07u4/do_you_believe_eth_market_cap_will_ever_eclipse/)