The crypto market experienced a turbulent weekend after a long-dormant Bitcoin whale unloaded more than 24,000 BTC, triggering a sudden sell-off worth nearly $2 billion. The move set off a chain reaction of liquidations and rattled investor confidence, underscoring just how influential large holders remain in shaping digital asset markets.
Dormant Wallets Reawaken as Flash Crash Hits
On-chain trackers revealed that the whale offloaded Bitcoin that had not moved for over five years. More than 12,000 BTC were sold on the Hyperunite platform in a single session, fueling heavy selling pressure. In total, roughly 18,000 BTC have already been liquidated, while another 6,000 BTC are reportedly still being transferred to exchanges.
The aggressive selling caused Bitcoin to tumble by nearly $4,000 within hours, wiping out $310 million in long positions across trading platforms. In broader terms, liquidations in Bitcoin and Ethereum together exceeded $550 million, according to market data providers.
Ethereum Emerges as Beneficiary
Instead of exiting the crypto space entirely, the whale redirected most of the capital into Ethereum. Estimates show that more than $2 billion in ETH was accumulated, with $1.3 billion staked almost immediately after purchase.
This strategic rotation helped Ethereum remain resilient, closing the week around $4,720 with modest weekly gains despite the market-wide downturn. Ethereum’s relative strength prevented a steeper decline in total crypto market capitalization, which slipped to $3.93 trillion following Bitcoin’s sharp drop.
Key Levels to Watch for Bitcoin
Market strategist Ali Martinez highlighted $112,000 as a critical support level for Bitcoin. The price has bounced from this zone multiple times in August, suggesting strong demand. Holding the line could pave the way for a rebound toward $118,000 or even $120,000.
However, analysts caution that if Bitcoin loses this key threshold, further downside pressure could accelerate, potentially triggering another wave of liquidations.
Altcoins Gain Ground as BTC Dominance Slides
As Bitcoin retreated, its market dominance slipped from above 60% to near 50%, sparking fresh inflows into altcoins. Ethereum is edging closer to its all-time high, while Solana broke past resistance and is now eyeing the $280–$300 range.
Analysts believe this capital rotation could set the stage for a renewed “altcoin season,” provided Bitcoin stabilizes at current levels.
Market Outlook
The whale’s dramatic sell-off demonstrates how concentrated holdings can destabilize markets but also highlights shifting investor preference toward Ethereum and high-performing altcoins. Whether Bitcoin can defend its support at $112,000 may determine if the market stabilizes or if further turbulence lies ahead.
For now, Ethereum’s strength and the growing momentum in alternative tokens suggest that the center of gravity in the digital asset market may be beginning to tilt away from Bitcoin.
