Bitcoin Plunges $4,000 in Minutes as Whale Sell-Off Shocks Crypto Market
Bitcoin experienced a sharp and sudden price drop—commonly referred to as a “flash crash”—that wiped $4,000 from its price within minutes, sending shockwaves through the cryptocurrency market. The sell-off, which occurred in the context of ongoing macroeconomic uncertainty and a recent surge in price, resulted in a broader collapse across major cryptocurrencies, including Ethereum and XRP. In just 24 hours, the total crypto market lost an estimated $100 billion in value [1].
The plunge was reportedly triggered by a single large holder—often referred to as a “whale”—selling off 24,000 Bitcoin, valued at over $2 billion, according to social media reports and on-chain analysis. Much of the Bitcoin was transferred to Hyperunite, a trading platform, with 12,000 units sold in a single day alone. The massive sell-off, involving coins that had remained dormant for over five years, exacerbated downward pressure on prices [2].
Market sentiment has shifted dramatically, with traders increasingly preparing for further declines. According to Sean Dawson, head of research at options platform Derive.xyz, the 25-delta skew for both Bitcoin and Ethereum has turned negative, signaling a growing preference for put options over calls. This represents the strongest demand for downside protection observed in two weeks. Dawson increased his forecast for Bitcoin falling back to $100,000 by the end of September to 35% from 20%, and for Ethereum to return to $4,000 to 55% [3].
David Hernandez, a crypto investment specialist at 21Shares, highlighted the impact of recent macroeconomic data, particularly the personal consumption expenditures (PCE) inflation report, which could either push Bitcoin back toward $120,000 or slow its momentum further. Vincent Liu, chief investment officer at Kronos Research, suggested the large-scale sell-off was more likely the work of multiple large holders or institutional players rather than a single entity [4].
The sudden drop has also raised concerns about the broader crypto market’s stability. Alex Kuptsikevich, FxPro’s chief market analyst, noted that liquidity is shifting from Bitcoin to Ethereum and other altcoins, such as Solana. However, he warned that similar selling pressures could soon spread to other assets.
Despite recent volatility, Bitcoin remains above the $110,000 level, though it has dipped below its 50-day moving average. The market continues to monitor whether this correction is a short-term fluctuation or the beginning of a more significant downturn [5].
[1] Forbes Digital Assets
[2] WhaleWire, X (Jacob King)
[3] Derive.xyz (Sean Dawson)
[4] The Block (Vincent Liu)
[5] FxPro (Alex Kuptsikevich)
