Bitcoin News Today: Whale Sell-Off Triggers Bitcoin Flash Crash, Dragging Market Into Turbulence

Bitcoin's price faces the risk of a deeper decline below $112,000, with top altcoins like Ethereum (ETH) and Solana (SOL) also falling into negative territory. Over the weekend, Ethereum briefly reached an all-time high of $4,954.81 before slipping to $4,776.46, a drop of nearly 1%. Meanwhile, Bitcoin hit a low of $110,779.01, its weakest level since July 10, despite previously hitting a peak of $124,496 on August 13. This volatility reflects growing concerns among investors about the stability of the crypto market.

The recent market turbulence was triggered by a large-scale sale of 24,000 Bitcoin by a major whale, valued at approximately $2.7 billion. This transaction led to a sharp sell-off, dragging the price of Bitcoin below $113,000 and causing a flash crash. The whale, identified by on-chain analyst Sani, holds over 152,874 BTC, worth more than $17 billion, and continues to liquidate their holdings. The impact was compounded by a shift in capital from Bitcoin to Ethereum, as a significant portion of the BTC sold was reinvested into ETH, which has seen a 220% increase since hitting a low of $1,471 in April.

The ongoing selling pressure has intensified due to the influence of Bitcoin's oldest whale holders. Bitcoiner Willy Woo has highlighted that the supply of Bitcoin is concentrated among OG whales who accumulated their holdings in 2011, when BTC was valued at $10 or lower. The cost differential, along with the whales' selling activity, has made it increasingly difficult for BTC to rise, as each sold unit requires over $110,000 in fresh capital to absorb. This dynamic has slowed Bitcoin’s rally, contributing to the prolonged sideways movement in the price action.

Ethereum, in contrast, has been the stronger performer in the current cycle, supported by regulatory tailwinds, growing interest in stablecoins, and corporate accumulation. On Saturday, Bitmine Immersion Technologies, a company chaired by Tom Lee, a prominent Wall Street bull, purchased $45 million in ether. Additionally, the staking mechanism and maturity of Ethereum's scaling solutions have helped stabilize ETH at the $4,000 level, turning it into a foundational asset for the next phase of price growth. Analysts note that a significant portion of Ethereum supply—nearly a third—is now locked in staking, further reinforcing its appeal as a yield-generating asset.

Despite the bearish short-term momentum, some experts remain optimistic about Bitcoin’s long-term prospects. Aike Capital founder Alex Krüger has suggested that once the current selling pressure subsides and the price moves above $113,500–$114,000, BTC could regain upward momentum. Meanwhile, Vijay Boyapati has described the current sell-off as a healthy part of the monetization cycle, noting that the whales' limited supply means their selling is essential for full price realization. However, the market remains cautious, with the Relative Strength Index (RSI-7) at 40.72 indicating oversold conditions, though no clear reversal signal has emerged.

Source: [1] Crypto Market Today (https://www.cnbc.com/2025/08/24/crypto-market-today.html) [2] Bitcoin Whale Sells 24,000 BTC (https://finance.yahoo.com/news/bitcoin-whale-sells-24-000-061435431.html) [3] Bitcoin Flash Crash Blamed on Crypto Whales (https://cointelegraph.com/news/bitcoin-flash-crash-blamed-crypto-whales-big-eth-trades)