Whales Flip to Ethereum as Bitcoin Stumbles Toward $110K
Bitcoin’s price retreated below $112,000 in late August 2025, marking a significant pullback from recent record highs as traders grappled with volatile market conditions. A major catalyst for the decline was a sharp selloff driven by leveraged long liquidations, with CoinGlass reporting over $640 million in liquidations within a 24-hour period as of the time of writing [1]. This selloff was compounded by a sudden and substantial Bitcoin price drop, which saw BTC/USD fall to as low as $10,700 in an hour—its lowest since July 10 [1]. Traders observed heightened volatility in the CME Bitcoin futures market, which opened with a notable gap, raising speculation over whether the price would stabilize or test support levels below $110,000 [1].
The price action also sparked debates among traders and analysts. Some anticipated a retest of previous all-time highs as a potential bounce point, while others warned of further downside risks if the market failed to consolidate. Fellow traders emphasized the importance of Bitcoin holding key support levels to avoid a return to the $100,000 range [1]. Meanwhile, on-chain analytics revealed contrasting behaviors among different wallet groups. While large whale entities continued to offload Bitcoin—particularly through strategic shifts from BTC to ETH—smaller hodlers maintained an accumulation trend [1]. Specifically, wallets holding up to 10 BTC remained in net accumulation, whereas those holding between 10 and 100 BTC began to show signs of profit-taking behavior [1]. CryptoQuant noted that while distribution dynamics were still dominant, the intensity of selling pressure appeared to be easing as the price pulled back [1].
Whale activity also played a critical role in shaping the market’s sentiment. A major entity sold nearly 22,769 BTC ($2.59 billion) over the past five days, converting the proceeds into Ethereum and opening a large ETH long position [1]. This move, analyzed by Lookonchain and Arkham, highlighted the shifting priorities of large investors, who increasingly viewed Ethereum as a more attractive asset class due to its staking yields and institutional adoption [3]. Analysts like Willy Woo noted that the influence of OG Bitcoin whales—those who accumulated BTC at or below $10 per coin—remained strong, with their continued selling requiring substantial capital to absorb [1]. The concentration of supply among these whale addresses meant that large price movements were often dictated by their strategic decisions [1].
The broader macroeconomic backdrop also contributed to the uncertainty. With the Federal Reserve’s Personal Consumption Expenditures (PCE) index due for release, markets remained fixated on the likelihood of rate cuts in September. CME Group’s FedWatch tool indicated that market participants were pricing in nearly a 90% probability of a 0.25% rate cut at the central bank’s next FOMC meeting [1]. Traders and analysts closely monitored these developments, as Fed policy decisions historically had a significant impact on risk assets, including Bitcoin [1]. The Fed’s evolving stance on its 2% inflation target further complicated expectations, with some observers suggesting that a more hawkish approach could undermine optimism around rate cuts [1].
In contrast to Bitcoin’s pullback, Ethereum continued to show resilience, reaching a new all-time high before retreating to around $4,776. The second-largest cryptocurrency benefited from growing institutional adoption, particularly among corporate entities that were beginning to treat ETH as a stakable treasury asset [3]. This trend, supported by regulatory clarity and increasing demand from ETF investors, contributed to Ethereum’s ability to maintain its $4,000 level [3]. Some analysts suggested that Ethereum’s dominance was a result of its more favorable staking yields and the maturation of its ecosystem compared to Bitcoin’s limited utility in that area [3].
As the market stabilized, investors awaited key data points that could influence further price action. These included the upcoming PCE inflation reading, the performance of major tech stocks like Nvidia, and the broader institutional response to Bitcoin’s volatility. While some traders forecasted a continuation of the current bearish momentum, others remained cautiously optimistic, emphasizing the potential for renewed accumulation once prices found a floor. The coming weeks would be crucial for determining whether the current correction marked the end of the bull market or a temporary consolidation ahead of the next upward leg [1].
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[1] BTC bull run over at $111K? 5 things to know in Bitcoin this week (https://cointelegraph.com/news/btc-bull-run-over-at-111k-5-things-bitcoin-this-week)
[2] Bitcoin Price Drops Below $112000 As Metaplanet … (https://bitcoinmagazine.com/markets/bitcoin-price-drops-below-112000-as-metaplanet-announces-to-buy-11-7m-worth-of-bitcoin)
[3] Ether erases gains from Jackson Hole rally after hitting new … (https://www.cnbc.com/2025/08/24/crypto-market-today.html)