- Bitcoin experienced a fast price drop, falling $4,000 in minutes and impacting the wider cryptocurrency market.
- A sell-off of over 24,000 bitcoins, worth more than $2 billion, is linked to the crash, according to market analysts.
- More than $310 million in long bitcoin positions were liquidated during the crash.
- The market-wide decline wiped $100 billion from the total crypto market value in 24 hours.
- Analysts suggest the large-scale drop may involve multiple major holders or institutions, not just a single seller.
Bitcoin saw a rapid decline in price, dropping $4,000 within minutes and causing losses across the broader crypto market. The decline followed a period of downward movement after comments from the chair of the U.S. Federal Reserve and occurred amid speculation about large holders triggering the event.
According to reports from social media and market analysts, the sudden drop was linked to one entity selling over 24,000 bitcoins, with an estimated value exceeding $2 billion. This shift in assets led to the liquidation of around $310 million in long positions, impacting traders who bet on higher prices.
Market researcher Jacob King stated on X that the “bitcoin flash crash today, which wiped out $310 million in long positions, has been traced to a single bitcoin whale dumping bitcoin for Ethereum.” King explained that the seller moved over 24,000 bitcoins, including coins that had not moved in more than five years, and sent about 12,000 coins to the Hyperunite trading platform on that day alone. Sani, founder of bitcoin data site TimeChainIndex, added on X that “this entity liquidated their entire 24,000 [bitcoin] balance, sending all of it to Hyperunite. They transferred 12,000 just today and are still actively selling, which is likely contributing to the ongoing price drop.”
The impact of the sell-off spread beyond bitcoin, hitting cryptocurrencies like ethereum and causing the total market capitalization to fall by about $100 billion in just one day. This has raised concerns that the sharp decline in bitcoin could prompt further declines in the crypto sector, affecting other coins.
Some analysts, including Vincent Liu, chief investment officer at Kronos Research, speculate that the scale of the event points to action by multiple major holders or institutional actors, rather than just one individual. Liu told The Block: “It’s more likely the work of multiple whales or an exchange with significant holdings, rather than a single entity. Large-scale transactions like this often involve institutional players or coordinated actions.”
Market analyst Alex Kuptsikevich from FxPro noted that bitcoin is trading at $112,000 after briefly falling to $110,000, a low not seen since early July. He stated that the recent price movement may be leading liquidity to shift from bitcoin into other cryptocurrencies, such as ethereum and solana, but warned that similar sell-offs could soon follow in other altcoins.
Other reports mention that Kanye West’s new cryptocurrency has lost 80% from its peak following the market drop, highlighting the broad effect of the crash.
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