Bitcoin News Today: Whale Exodus Triggers Bitcoin Flash Crash, Shifting Power to Ethereum

Bitcoin may face further downside as a $2.7 billion sell-off by a major whale triggered a flash crash over the weekend, pushing the price below $113,000. According to on-chain analyst Sani, the whale sold 24,000 BTC, sending the price plunging by around $4,000 in minutes. Despite still holding 152,874 BTC valued at over $17 billion, the whale appears to be actively continuing its sell-off, with 12,000 BTC sent to the Hyperunite trading platform in a single day [2]. The move has amplified fears of continued pressure on the BTC price and raised concerns about liquidity as the market processes the large-scale transaction [7].

The sell-off coincided with broader volatility in the crypto market. Bitcoin dipped to a six-week low near $111,000 earlier in the week, despite a brief rally on Friday following Federal Reserve Chair Jerome Powell's comments on potential rate cuts [3]. Analysts attributed the drop to a combination of whale selling and profit-taking from the previous day’s gains. Vincent Liu of Kronos Research noted that the rally after Powell’s speech was driven by thin liquidity and lacked lasting conviction, resulting in a sharp correction as leverage unwound [7].

Ethereum, the second-largest cryptocurrency by market capitalization, also experienced significant price swings. While ETH briefly hit a record high of $4,955 last week, it pulled back to $4,715 on Monday amid broader market uncertainty [3]. Onchain metrics suggest that Ether is entering a “belief” phase, similar to past bull cycles, with the long-term holder net unrealized profit/loss (NUPL) indicator moving into the “belief-denial” zone [4]. Analysts like Gert van Lagen and Mickybull Crypto have highlighted the potential for ETH to rise to $10,000 or even $12,100 based on technical indicators and growing institutional demand [4].

Whale activity has further complicated the market dynamics. In addition to the large Bitcoin sell-off, another whale sold 18,142 BTC worth $2.04 billion and rotated the funds into Ethereum, with a significant portion staked [2]. Jacob King of WhaleWire noted that the selling triggered a panic cascade among traders, with much of the capital being moved into Ethereum [2]. This shift in asset allocation has contributed to Ethereum ETF inflows outpacing Bitcoin ETFs in recent weeks, as institutional investors and corporate treasuries increase their exposure to the altcoin [1].

Technical indicators remain mixed. While Bitcoin's RSI-7 suggests oversold conditions, there are no clear reversal signals yet [2]. Ethereum’s rounded bottom pattern on the daily chart provides a technical target of $12,130, according to analysts. Bitget CEO Gracy Chen highlighted Ethereum’s strong ecosystem demand and potential for further gains, projecting a price range of $4,600 to $5,200 for ETH in the short term. Meanwhile, Bitcoin is expected to remain in a consolidation phase between $110,000 and $120,000 for the next one to two weeks [8].

Market observers remain cautious as whale activity and macroeconomic factors continue to shape investor sentiment. With over $2.7 billion in Bitcoin sold and significant capital flows into Ethereum, the balance of power in the crypto market is shifting. Analysts are closely watching whether these trends will lead to a prolonged altcoin season or if Bitcoin can regain its dominance in the coming months.

Source:

[1] title1 (https://www.cnbc.com/2025/08/24/crypto-market-today.html)

[2] title2 (https://finance.yahoo.com/news/bitcoin-whale-sells-24-000-061435431.html)

[3] title3 (https://www.investing.com/news/cryptocurrency-news/bitcoin-price-today-slips-below-113k-near-6wk-low-despite-fed-cut-bets-4208087)

[4] title4 (https://cointelegraph.com/news/20k-eth-price-in-play-ethereum-belief-zone)

[5] title5 (https://finance.yahoo.com/news/ethereum-jumps-record-price-move-184709473.html)

[6] title6 (https://www.investors.com/news/ethereum-price-record-high-bitcoin-cryptocurrency-fed-speech/)

[7] title7 (https://www.theblock.co/post/368060/bitcoin-under-112700-whale-migration)

[8] title8 (https://cointelegraph.com/news/11b-bitcoin-whale-closes-450m-eth-long-108m-ether)