Bitcoin News Today: Whale Sell-Off Exposes Illiquid Crypto Market's Fragile Pulse

Bitcoin's price experienced a sharp decline following a large whale's sale of 24,000 BTC, wiping out gains from a previous rally triggered by Fed Chair Jerome Powell’s dovish speech. The price dropped from a high of $116,900 to $112,546 within ten minutes, a loss of over 2%. The move was attributed to illiquid market conditions and the whale’s continued selling activity, which began with the transfer of 12,000 BTC to Hyperunite. According to Timechainindex.com, the whale still holds over 152,000 BTC across all associated addresses. The flash crash reversed the momentum gained after Powell’s speech, which had hinted at potential rate cuts and a more accommodative monetary policy stance. Despite this, the price later recovered to trade around $112,800 as of the latest data.

Powell’s Jackson Hole speech, initially perceived as more hawkish by markets, instead signaled openness to rate cuts, causing a temporary spike in Bitcoin prices. The cryptocurrency surged nearly 4% in the hours following the speech, reaching $116,900. The broader financial markets also responded positively, with U.S. stocks rising and the dollar index declining. However, the optimism was short-lived, with Bitcoin retreating from its post-Powell high amid renewed caution among options traders. Data from Amberdata revealed that 25-delta risk reversals for Bitcoin options remained negative through the December expiry, indicating that put options—used to hedge against price declines—were more expensive than call options. This suggests that traders were still pricing in downside volatility despite the Fed’s apparent shift to a more dovish stance.

Ethereum’s performance mirrored Bitcoin’s, albeit with a deeper correction. ETH had briefly approached its lifetime peak before retreating by approximately 12% in the days leading up to Powell’s speech. The price rebounded nearly 8% following the speech, but it has since printed a doji pattern at its record high, signaling indecision in the market. Meanwhile, U.S. spot Ether ETFs saw a significant inflow of $287.6 million on Thursday, led by BlackRock’s iShares Ethereum Trust (ETHA), which pulled in $233.5 million. This marked a turnaround after four consecutive days of outflows. The ETFs now hold around 6.42 million ETH, valued at approximately $27.66 billion. Corporate treasury purchases of ETH have also increased, with companies like SharpLink Gaming adding to their reserves and sparking debate about the impact of such accumulation on the Ethereum network.

In the broader institutional and regulatory landscape, discussions around Ethereum’s potential role in a digital euro gained traction following the passage of the U.S. GENIUS Act, which provides legal clarity for the stablecoin market. European Central Bank officials are reportedly reconsidering the digital euro strategy and exploring the use of public blockchains like Ethereum and Solana. This shift reflects growing global interest in decentralized infrastructure and the desire to maintain competitiveness in the evolving financial landscape. The development could represent a pivotal moment for Ethereum, as it moves from being a speculative asset to a foundational layer for digital finance.

Overall, the cryptocurrency market remains sensitive to macroeconomic signals, particularly those from central banks. While Powell’s comments have rekindled hopes for a rate cut, the bearish technical setup in Bitcoin and Ethereum suggests that volatility and caution are likely to persist. As investors balance optimism about monetary easing with uncertainty about market conditions, the path forward for both assets will depend on further clarity from policymakers and evolving investor sentiment.

Source: [1] Bitcoin Reverses Powell Spike With a Flash Crash as Options Market Signals Jitters Ahead (https://www.coindesk.com/markets/2025/08/25/bitcoin-reverses-powell-spike-with-a-flash-crash-as-options-market-signals-jitters-ahead) [2] Bitcoin and Crypto Stocks Surge as Powell's Rate-Cut Hint Revives Risk Appetite (https://www.investopedia.com/bitcoin-and-crypto-stocks-surge-as-powell-rate-cut-hint-revives-risk-appetite-11795898) [3] Bitcoin Price (BTC) News: Higher on Powell Jackson Hole (https://www.coindesk.com/markets/2025/08/21/powell-puts-september-rate-cut-in-play-bitcoin-pushes-higher) [4] US spot ether etfs rebound with $287.6 million inflows after four-day outflow streak (https://www.mitrade.com/insights/news/live-news/article-3-1062812-20250823) [5] CoinDesk: Bitcoin, Ethereum, XRP, Crypto News and Price Data (https://www.coindesk.com/)