Bitcoin News Today: Whales Trigger $900M Crypto Collapse—Bitcoin Falls 12% in 24 Hours

Over the past 24 hours, the cryptocurrency market experienced a sharp correction, with Bitcoin dropping below $110,000 and triggering over $900 million in liquidations, according to data from CoinGlass [1]. The selloff was largely driven by a large holder offloading 24,000 BTC, valued at over $2.7 billion at the time, into thin liquidity, which exacerbated volatility and triggered a wave of forced selling across the market [2]. Long positions accounted for the majority of the liquidations, with more than 200,000 traders affected globally [1].

Bitcoin, which had been trading near $124,000 in early August, has now corrected by more than 12% and is down 7% since Fed Chair Jerome Powell’s Jackson Hole speech, where he signaled potential interest rate cuts [1]. The sudden price drop erased all gains from the previous week, with the total crypto market capitalization falling below $4 trillion and losing nearly $200 billion in value [1].

Ethereum (ETH), while also affected, fared slightly better, with Ether trading at $4,375 and managing to stay above last week’s low. Despite a 2.8% decline in Bitcoin, Ether has maintained a stronger position, having reached a record high of $4,950 just days prior [3]. Analysts noted that institutional buying and a shift in exposure from Bitcoin to Ethereum could provide Ether with greater upside potential, especially if the Fed proceeds with rate cuts, given its smaller market cap [2].

The broader altcoin market, however, faced deeper pain. Solana (SOL), Dogecoin (DOGE), Cardano (ADA), Chainlink (LINK), and Sui (SUI) all experienced double-digit losses, contributing to a wider sell-off across the market [3]. Institutional allocations and treasury purchases have continued to support Ethereum’s growth, with companies and large whales accumulating significant amounts of ETH during the recent downturn [4]. For instance, BitMine Immersion added nearly 5,000 ETH to its holdings, signaling continued confidence in the asset despite the volatility [4].

Looking ahead, analysts remain cautious. Technical indicators suggest Bitcoin could face further downside, with key support levels at $103,700 and $100,800 [5]. If the price breaks below $105,000, it could accelerate a move toward the $92,000–$100,000 range. September has historically been a weak month for crypto, with significant corrections observed in 2017 and 2021, adding to the uncertainty [1]. However, record-high futures open interest and institutional inflows, particularly into Ethereum, indicate that sentiment has not turned entirely bearish [4].

The market appears to be in a period of consolidation and repositioning, with some analysts suggesting that the recent liquidation wave could serve as a necessary reset for the upward trend. Whale activity, including large-scale purchases of both Bitcoin and Ethereum, has hinted at a potential floor being set for further accumulation. Whether the current correction marks the start of a deeper pullback or merely a healthy shakeout remains to be seen, but the actions of institutional players and large holders suggest that the long-term fundamentals remain intact [4].

Source:

[1] Cointelegraph - Crypto liquidations hit $900M as Bitcoin sheds Jackson ...

[2] CoinDesk - Bitcoin Flash Crash Triggers $550M in Sunday ...

[3] Yahoo Finance - Bitcoin, Ethereum and Dogecoin Slide as Crypto Liquidations ...

[4] Mitrade - Nearly $1B Wiped Out in Crypto Liquidations: Are Whales ...

[5] CoinMarketCap - Crypto Market Faces $900M Liquidations Amid Bitcoin ...