Bitcoin News Today: Whales Trigger Exodus as Bitcoin's Bull Case Fades

Bitcoin prices declined below $111,000 in early August 2025, marking a significant drop after a brief rebound following a dovish speech by Federal Reserve Chair Jerome Powell at the Jackson Hole symposium. The rebound, which had pushed Bitcoin above $117,000, was driven by expectations of an interest rate cut as early as September. However, the rally proved short-lived as liquidity was thin and momentum faded quickly. According to data from The Block, Bitcoin's price dipped to around $112,500 on Sunday, losing over 2.12% in a 24-hour span.

The decline was attributed to whale activity, with reports indicating that a single whale sold over 24,000 BTC in the days leading up to the weekend. This large-scale movement triggered a cascade of panic selling among retail traders. WhaleWire CEO Jacob King noted that this whale activity was part of a broader trend of large holders shifting their positions from Bitcoin to Ethereum. The movement has been exacerbated by the approval and anticipated expansion of Ethereum ETFs, which have attracted significant institutional interest and inflows.

Bitcoin's dominance in the cryptocurrency market has also been under pressure, dropping from around 61% at the beginning of August to approximately 57.94%. This decline reflects a broader shift in investor sentiment towards altcoins, particularly Ethereum, which recently reached a new all-time high of over $4,946. According to analysts, Ethereum's growing corporate adoption and the potential for staking activity in its ETFs make it a strong competitor in the market.

Institutional demand for Bitcoin has also waned, with spot ETF inflows dropping to their lowest level since April. Over the past month, Bitcoin ETFs have recorded outflows, which have coincided with a decline in institutional buying and increased profit-taking by large investors. For instance, Strategy Inc, the largest corporate Bitcoin holder, has significantly reduced its accumulation pace. These factors, combined with a drop in network fees to levels not seen since 2011, signal a weakening in demand for the asset.

Technical indicators also highlight Bitcoin's bearish momentum. The Relative Strength Index (RSI) hovers near 47, and the MACD remains negative, suggesting a lack of conviction in the upward trend. Bitcoin is currently trading within a descending channel and faces critical resistance at $117,000. A break above this level could open the door to a retest of the $121,000 to $127,000 range. However, a further breakdown below $111,000 could test the structural floor near $105,000, a key level for the integrity of the current bull cycle.

Despite the near-term bearish outlook, the long-term fundamentals for Bitcoin remain intact. The asset continues to benefit from macroeconomic catalysts, such as potential Federal Reserve rate cuts and institutional adoption via ETFs. In the medium to long term, Bitcoin is expected to find support near its 200-day simple moving average and could regain upward momentum if it sustains levels above $110,000. Analysts emphasize the importance of monitoring key macroeconomic data and market conditions to gauge the trajectory of Bitcoin in the coming months.

Source: [1] $300M in Longs Liquidated in 1 Hour: Bitcoin Crashes ... (https://cryptopotato.com/300m-in-longs-liquidated-in-1-hour-bitcoin-crashes-ethereum-rejected-at-5k/) [2] Bitcoin News: Eric Trump's BTC Price Predictions ... (https://www.coindesk.com/business/2025/08/23/eric-trump-makes-bitcoin-price-predictions-as-he-reportedly-gets-ready-to-visit-metaplanet) [3] Bitcoin Price Forecast: BTC-USD Holds $114K, Eyes $117K ... (https://www.tradingnews.com/news/bitcoin-price-forecast-btc-usd-struggles-at-117k-usd-ressitance-whule-whales-lock-in-profit) [4] Jack Dorsey Says There's Only One Way To Choose Between ... (https://finance.yahoo.com/news/jack-dorsey-says-theres-only-123727966.html) [5] Bitcoin slips to $112700 amid continued whale migration to ... (https://www.theblock.co/post/368060/bitcoin-under-112700-whale-migration) [6] Do you believe ETH market cap will ever eclipse BTC ... (https://www.reddit.com/r/CryptoCurrency/comments/1mz07u4/do_you_believe_eth_market_cap_will_ever_eclipse/) [7] Bitcoin Price, BTC Price, Live Charts, and Marketcap (https://www.coinbase.com/price/bitcoin)