Bitcoin News Today: A Whale's $300M Sell-Off Triggers Bitcoin Flash Crash and $550M in Liquidations

Bitcoin’s price experienced a sharp correction late on Sunday, triggering widespread liquidations and rattling traders globally. The cryptocurrency briefly fell to a six-week low of $110,600, causing $300 million in long position liquidations within a single hour, with over 130,000 traders affected. Long positions accounted for approximately 90% of the liquidations, with the largest single position wiped out on OKX exceeding $12 million [1]. The selloff followed a volatile rebound earlier in the week, sparked by optimism over potential U.S. interest rate cuts, which briefly pushed Bitcoin above $117,000. However, the upward momentum proved unsustainable as bears reemerged, dragging the price back below the $113,000 mark [1].

The price collapse was exacerbated by a large-scale sell-off from a whale, who offloaded 24,000 BTC—valued at over $300 million—into thin liquidity. This triggered a flash crash, with Bitcoin briefly dipping below $111,000 before stabilizing near $112,800. The move wiped out over $550 million in liquidated positions across both Bitcoin and Ethereum (ETH) [3]. Ethereum, which had reached a record high of nearly $5,000 earlier in the week, also suffered a setback, tumbling to $4,700 before recovering to $4,800. Analysts noted a shift in institutional demand from Bitcoin to ETH, citing Ethereum’s smaller market cap and greater utility in stablecoins and smart contracts as potential drivers of future upside [3].

Despite the turmoil, Ethereum’s performance stood out as a positive note in the market. With a year-to-date gain of 45%, some analysts believe the altcoin is positioned to outperform Bitcoin in the event of a Fed rate cut. “Ethereum’s momentum and relatively smaller market cap compared to Bitcoin would give it more upside in the scenario that the pending Fed rate cut unleashes more money into the money supply,” said Jeff Mei, COO at BTSE [3]. This sentiment was echoed by others in the industry, including Samir Kerbage of Hashdex, who noted Ethereum’s growing role in traditional finance infrastructure [3].

The broader market also faced significant headwinds, with most altcoins exhibiting sharp corrections. The heightened volatility underscored the fragility of leveraged positions in the crypto space. As of the latest data, Bitcoin traded slightly above $112,000, but remained below the psychological threshold of $113,000, a level seen as critical for the recovery of bullish momentum. The market’s next major test will be whether buyers step in to defend key support levels or if further capitulation leads to a deeper decline [1].

Looking ahead, the market remains under pressure from macroeconomic uncertainty and the looming influence of major institutional players. While bullish forecasts from figures like Eric Trump—predicting $175,000 for Bitcoin in 2025—continue to fuel optimism, the recent selloff has highlighted the challenges of maintaining bullish sentiment in a highly leveraged and volatile market [2]. Investors are closely watching for signs of stabilization, as well as developments in Japan and other Asian markets, where regulatory clarity is beginning to attract crypto firms [2].

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[1] $300M in Longs Liquidated in 1 Hour: Bitcoin Crashes ... (https://cryptopotato.com/300m-in-longs-liquidated-in-1-hour-bitcoin-crashes-ethereum-rejected-at-5k/)

[2] 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)

[3] 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)