Bitcoin News Today: Institutional Whales Trigger $2B Crypto Earthquake, Sparking Market Mayhem

Bitcoin experienced a sharp and sudden price drop, often referred to as a "flash crash," on August 24, 2025, wiping out $4,000 from its price within minutes. The move came after a period of gains driven by Federal Reserve Chair Jerome Powell’s comments at the Jackson Hole Economic Symposium, which had sparked optimism about potential interest rate cuts. The price plunge reached as low as $110,000, marking a fresh intraday low since early July and triggering a wave of liquidations across the crypto derivatives market. Over $642 million in leveraged long positions were erased in the 24-hour period following the crash, with Bitcoin alone accounting for $235.5 million in liquidations [1].

The crash was attributed to the actions of a large single holder, or “whale,” who sold over 24,000 BTC—worth more than $2 billion—according to on-chain data and social media reports. The majority of these coins had been inactive for over five years and were transferred to the Hyperunite trading platform. Some analysts, including Jacob King from WhaleWire and Sani from TimeChainIndex, suggested the sell-off was not only a result of a single entity but potentially the coordinated actions of multiple large holders or institutional players [1]. Vincent Liu of Kronos Research noted that large-scale transactions like this are typically associated with institutional behavior or strategic market manipulation [1].

The ripple effect extended beyond Bitcoin, dragging down the broader cryptocurrency market. Ethereum, XRP, and other major tokens lost hundreds of billions in market value in a 24-hour span. Ethereum, in fact, saw a record high during the period, despite the overall sell-off, as investors shifted liquidity from Bitcoin to altcoins like Solana [1]. This shift, however, did not prevent a broader correction in the crypto market. Alex Kuptsikevich of FxPro observed that the move below the 50-day average for Bitcoin indicated increased selling pressure and suggested that similar moves could soon affect altcoins [1].

Market sentiment turned sharply bearish in the aftermath of the flash crash. Derivatives platform Derive.xyz’s Sean Dawson noted a negative 25-delta skew for both Bitcoin and Ethereum, reflecting strong demand for downside protection. He raised the probability of Bitcoin dropping to $100,000 by the end of September to 35%, up from 20% previously, and estimated a 55% chance for Ethereum to fall to $4,000 [1]. Jelle, a crypto analyst on X, warned that Bitcoin would need to hold above $111,900 to avoid a deeper correction. If the level breaks, he suggested a retest of $100,000 could follow [4].

Despite the turmoil, some signs of resilience emerged. Bitcoin spot ETFs recorded a net inflow of $219 million on August 26, ending a six-day streak of outflows and indicating continued institutional interest [5]. Additionally, treasury companies like Strategy added 3,081 BTC to their reserves, signaling selective accumulation at lower price levels [5]. However, the broader market remained cautious, with traders bracing for further volatility. Glassnode highlighted that the $110.8K level represented the average cost basis for 1–3 month holders who had accumulated during the May–July rally. Holding above this level could stabilize market sentiment, but a break below it would likely trigger a deeper, prolonged correction [6].

Analysts remain divided on the long-term outlook. While some, like Gert van Lagen and BitQuant, maintain bullish targets of $350,000 and $145,000 respectively, others emphasize the risks of a bearish continuation. The key factors under observation include institutional buying activity, on-chain metrics like the SOPR (Spent Output Profit Ratio), and whether Bitcoin can maintain its position above the 100-day EMA. The coming weeks will be crucial in determining whether this recent correction marks the beginning of a new bear market or a temporary consolidation ahead of a stronger upward move.

Source:

[1] Forbes Digital Assets (https://www.forbes.com/sites/digital-assets/2025/08/26/bitcoin-price-flash-crash-panic-suddenly-wipes-100-billion-from-crypto-market/)

[2] Investors.com (https://www.investors.com/news/ethereum-price-record-high-bitcoin-cryptocurrency-fed-speech/)

[3] Forbes Digital Assets (https://www.forbes.com/sites/digital-assets/2025/08/25/bitcoin-price-flash-crash-panic-suddenly-wipes-100-billion-from-crypto-market/)

[4] Cointelegraph (https://cointelegraph.com/news/bitcoin-late-longs-wiped-out-sub-110k-btc-price-calls-louder)

[5] Mitrade (https://www.mitrade.com/insights/crypto-analysis/bitcoin/fxstreet-BTCUSD-202508261805)

[6] Blockchain News (https://blockchain.news/flashnews/bitcoin-btc-critical-support-110-8k-1-3m-holder-cost-basis-at-risk-glassnode-warns-of-multi-month-weakness-if-lost)

[7] Ambcrypto (https://ambcrypto.com/bitcoins-110k-flash-crash-sends-retail-running-whos-still-holding/)