$48 Billion Vanishes in Bitcoin Flash Crash Sparked by Whale
Bitcoin (BTC) dropped 3.56% from $115,425 to $110,850 in the last 24 hours, wiping out approximately $48 billion in market capitalization, according to CoinMarketCap data.
The crash was linked to a cryptocurrency whale rotating over $2 billion in BTC into Ethereum (ETH).
According to blockchain data, a whale transferred 24,000 BTC, valued at $2.7 billion, to Hyperliquid, a decentralized perpetuals platform, starting Aug. 16, 2025.
Around 18,142 BTC estimated to be worth approximately $2 billion from the transaction, was sold and converted into 416,598 ETH—with 275,500 ETH valued at $1.3 billion at $4,700 per ETH token—staked and 135,263 ETH used for long positions, earning a profit of $185 million.
The whale still holds 152,874 BTC, worth $17 billion, a detail often overlooked in reports. This massive transaction allegedly triggered a wave of sell orders across exchanges, ultimately leading to the downturn. Ethereum also dropped 7.41%, from $4,937 to $4,571.
As of Aug. 25, 2025, Bitcoin trades at $110,850, while Ethereum trades at $4,571, according to CoinMarketCap.
BTC Price Chart (Source: CoinMarketCap)
Early Bitcoin Whales Stall Price Surge, Says Analyst
In an Aug. 24 post on X, analyst Willy Woo linked Bitcoin’s slow price growth this cycle to “OG whales”—early adopters who accumulated large BTC holdings around 2011 at $10 or less.
With such low cost bases, each BTC sold by these whales requires over $110,000 in new capital to absorb, creating sustained selling pressure.
Woo’s analysis, supported by a chart of BTC supply distribution from 2010 to 2025, shows companies holding 1,000+ BTC peaked in 2011 and have been gradually distributing since, in line with Bitcoin’s logarithmic price growth.
He describes this as “market growing pains,” a phase where new buyers absorb legacy supply.
Analyst Vijay Boyapati supports this on X, noting that whale selling supports Bitcoin’s long-term monetization and expects such dynamics are necessary for its maturity.
Will Whales Keep Shaking Things Up?
Whale’s entry into ETH is just part of a larger trend, as another investor sold 670 BTC worth approximately $76 million last week to go long Ethereum, showing confidence in ETH’s future.
Woo cautions that OG whale selling could continue to cap Bitcoin’s gains until fully absorbed by new capital.
Analyst Alex Krüger also identified a key resistance zone at $113,500–$114,000, with $115,000 as the next break.
The market continues to be susceptible to whale transactions, though analysts view these disruptions as part of Bitcoin’s evolution.
