Bitcoin dropped below $110K after whale sell-off marks a sharp shift in the crypto market. A single wallet sold 24,000 BTC, triggering a huge wave of liquidations and a massive price correction. Over-leveraged traders suffered the most as technical levels broke down.
Whale Dump Triggers Massive Liquidations
One of the biggest Bitcoin holders sold 24,000 BTC worth over $2.7 billion. The massive sell-off pushed the cryptocurrency below critical support of $110,000 to a low of $108,600. The action unwound over $900 million in leverage positions within the crypto space.
BTC contributed $269 million to liquidations. Ethereum lost $238 million. In total, over 167,000 traders were liquidated in a 24-hour period. The largest individual loss was a $39 million Huobi long position loss.
Institutional Bitcoin Buying Overwhelms Retail Panic
Retail investors panicked to sell, but institutions took advantage. Spot Bitcoin ETFs witnessed $219 million in net inflows following six days of redemptions. Institutional corporate buyers and MicroStrategy allegedly bought more than 3,000 BTC on the downtrend.
MicroStrategy alone holds more than 628,000 BTC worth more than $71 billion at current prices. Japanese company Metaplanet also boosted its stash. This divergence reflects institutional optimism beyond short-term action.
Bitcoin Cycle Data Suggests Possible Recovery
Blockchain data suggests that this market cycle is following identical bull cycles of the past. BTC hit its high 2–3 months ago during the same cycle pattern in 2017 and 2021. Trends in current prices may be a consolidation process before the last rally.
Earlier in this month, the cryptocurrency registered an intraday high of about $124,000. Whales stacked between $6 and $8 billion worth of profit-taking on the way. Such a trend, while a manifestation of distribution, is typical of past bullish trends during terminal-stage rallies.
With pullbacks during August, markets were less extreme compared to past corrections witnessed during January and May, reflecting relative strength. Such strength is in favor of expecting a new trend.
Shift to Altcoins Gains Momentum
When Bitcoin backed up, altcoins were rotated into. Ether took more than 20% in August before pulling back to some extent. Solana also experienced higher volume. Rotation has historically been considered a risk-on action and may be indicative of fresh investor optimism. Cycle indicators are pointing toward recovery, with altcoins strengthening as BTC consolidates.
