Bitcoin News Today: Whales Dive In as $940M in Crypto Positions Go Up in Smoke

Bitcoin and Ethereum experienced a sharp downturn in early August, triggering widespread liquidations in leveraged positions and exposing vulnerabilities in crypto market liquidity. The total value of liquidations across major cryptocurrencies exceeded $940 million in a 24-hour period, with Bitcoin and Ethereum accounting for the largest portions of the losses. According to data from Coinglass, approximately $277 million in Bitcoin-related positions and $320 million in Ethereum-related positions were liquidated, driven primarily by longs being forced to exit due to declining prices and leveraged exposure [3].

The sell-off coincided with Bitcoin sliding below the $110,000 mark for the first time since mid-August, a key psychological and technical level for traders. This price movement triggered automatic liquidations and exacerbated the decline by reducing order book depth and triggering algorithmic selling. The decline in Bitcoin was further compounded by a large whale offloading $2.7 billion in BTC, signaling increased uncertainty in the market [2].

Ethereum’s losses were even steeper in percentage terms, with the coin falling below $4,500 to trade at $4,393, a 7.29% drop within 24 hours. Altcoins, including Solana (SOL), Dogecoin (DOGE), and XRP, also saw significant declines, adding tens of millions to the overall liquidation total. Ethereum traders bore the brunt of the liquidation wave, with $322.85 million wiped out, $279.79 million of which came from long positions [3].

Despite the market turmoil, some large investors and institutional players have taken advantage of the dip to accumulate assets at lower prices. A major crypto whale (bc1qgf) added 455 BTC, valued at nearly $50.75 million, while another large investor (0xd8d0) purchased 10,000 ETH and 500 BTC in OTC trading, spending nearly $98.66 million in total [3]. BitMine Immersion, the largest public holder of Ethereum, also increased its holdings by 4,871 ETH, valued at $21.97 million, reflecting continued confidence in the asset’s long-term value.

Market analysts have drawn comparisons between the current liquidity conditions and those seen in 2022, when Bitcoin faced a 65% correction amid a tightening Federal Reserve policy. The recent drop in liquidity levels, particularly in the overnight reverse repurchase agreement (O/N RRP) facility, has raised concerns about potential renewed volatility. GLJ Research’s Gordon Johnson warned that unless the Fed reverses its quantitative tightening policy, liquidity could contract for the first time since 2022, potentially triggering another significant correction in Bitcoin and other crypto assets [2].

Meanwhile, traders and analysts are closely watching key price levels for Bitcoin and Ethereum in the coming days. The $105,000 to $100,000 range is considered a critical support zone for Bitcoin, with further declines likely to test the market’s depth and resilience. A rebound may be fueled by a return of spot ETF inflows or a broader stabilization of macroeconomic conditions, although the risk of further outflows remains high.

As the market digests these developments, the interplay between macroeconomic forces and crypto-specific dynamics will be key to determining the path forward. While the sharp sell-off has created panic in some corners of the market, others view the dip as a buying opportunity, with whales and institutional players continuing to add to their positions amid the volatility. The coming weeks will likely provide greater clarity on whether this is a temporary correction or the start of a more prolonged bearish phase.

Source:

[1] title1 (https://www.mitrade.com/insights/news/live-news/article-3-1069503-20250826)

[2] title2 (https://finance.yahoo.com/news/bitcoin-65-crash-risk-returns-094620465.html)

[3] title3 (https://www.mitrade.com/insights/news/live-news/article-3-1068690-20250826)