Bitcoin News Today: Whale Exodus Sparks Bitcoin Exodus Toward $110K Abyss

Bitcoin faces a potential decline below $110,000 amid significant whale activity and a shift in investor preferences toward Ethereum (ETH), according to multiple market analyses and blockchain data sources. The movement of large Bitcoin holders—often referred to as whales—toward Ethereum has been cited as a key factor in Bitcoin’s recent volatility, with some observers warning that the trend could intensify.

Over the weekend, Bitcoin dropped to as low as $110,779.01, marking its lowest level since July 10, before recovering slightly to trade near $112,000. This decline followed a brief rally spurred by Federal Reserve Chair Jerome Powell's hints at potential rate cuts during the Jackson Hole symposium on August 23. However, analysts suggest the rally was driven by thin liquidity rather than sustained demand, leading to a swift reversal [2].

Blockchain analytics firm Lookonchain reported that a whale with a substantial Bitcoin holding rotated out part of its 100,784 BTC to buy 62,914 ETH and establish a 135,265 ETH derivatives long position. This activity coincided with a broader trend of institutional investors and high-net-worth individuals swapping Bitcoin for Ethereum, driven in part by growing corporate interest in staking and ether-based treasuries [2].

According to Jacob King, CEO of WhaleWire, a single whale sold over 24,000 BTC over several days, triggering a cascading sell-off that accelerated Bitcoin’s price drop. “Once the whale started selling, it triggered a panic cascade, with other traders selling too, amplifying the crash,” King stated on social media. The majority of the proceeds were moved into Ethereum, with $2 billion bought and $1.3 billion staked [2].

Vincent Liu, CIO of Kronos Research, noted that large-scale transactions like these are typically the result of coordinated actions by institutional players or multiple whales, rather than a single entity. He emphasized that the market is still in a period of recalibration following the initial optimism around Powell’s comments [2].

The shift in capital from Bitcoin to Ethereum is also evident in the performance of spot exchange-traded funds (ETFs), which have seen stronger inflows for Ether compared to Bitcoin. Analysts attribute this trend to Ethereum’s regulatory tailwinds, growing corporate adoption, and the potential for upcoming ETH ETF staking approvals. “With ETH ETF staking approval on the horizon, expect increased staking activity and potential altcoin outperformance,” Liu said [2].

Bitcoin’s dominance in the cryptocurrency market has also declined slightly, dropping to 57.94% from around 61% at the beginning of the month. This suggests a growing appetite for altcoins, particularly Ethereum, as investors diversify their holdings and seek higher-yield opportunities [2].

Looking ahead, the market remains cautious, with analysts monitoring key macroeconomic data, including initial jobless claims, for further signals on the trajectory of U.S. monetary policy. In the short to medium term, Bitcoin is expected to remain volatile, with the potential to test critical support levels below $110,000 if the current whale activity and market sentiment persist [2].

Source: [1] Crypto Market Today (https://www.cnbc.com/2025/08/24/crypto-market-today.html) [2] Bitcoin Under $112,700 and Whale Migration (https://www.theblock.co/post/368060/bitcoin-under-112700-whale-migration) [3] Bitcoin Flash Crash Blamed on Crypto Whales and Big ETH Trades (https://cointelegraph.com/news/bitcoin-flash-crash-blamed-crypto-whales-big-eth-trades) [4] Bitcoin Whales Swap BTC for Ether as Trader Sees ETH at $5,500 Next (https://cointelegraph.com/news/bitcoin-whales-swap-btc-for-ether-trader-sees-eth-hitting-5-5k-next)