- Whale dumped 24,000 BTC, triggering $310M liquidations across crypto markets.
- Bitcoin struggles to hold $112K support, rebound toward $120K possible.
- Bitcoin dominance dropped near 50%, fueling hopes of altcoin season.
The latest flash crash in Bitcoin was not a signal of a market top, but rather a massive, strategic rotation of capital. A single, long-dormant whale cashed out over $2 billion in Bitcoin, but instead of leaving the market, they immediately rotated those funds into Ethereum.
The global crypto market cap slipped to $3.93 trillion, weighed down by this Bitcoin’s sudden plunge. Ethereum traded at $4,723.13, still holding relatively firm with a 1.36% gain on the week. Despite red candles across the board, analysts say the correction could be short-lived, provided Bitcoin holds a key support zone.
Whale Dump Behind $310 Million Wipeout
The sharp sell-off was triggered by a single Bitcoin whale, who dumped over 24,000 BTC in the past few days. This caused a flash crash that erased $310 million in long positions in just hours.
The whale sold coins that had not moved in more than five years, sending more than 12,000 BTC today alone to the Hyperunite trading platform.
So far, the whale has liquidated over 18,000 BTC worth $2 billion, while another 6,000 BTC valued at $670 million remain on track to be sold. Interestingly, most of the proceeds are being shifted into Ethereum, with $2 billion in ETH purchased and more than $1.3 billion staked.
Levels to Watch: $112,000 and $120,000
The sell-off has pushed Bitcoin down to its most critical support level. Analyst Ali Martinez said that Bitcoin holding above $112,000 is all that’s needed for a rebound back to $120,000.
He’s charted BTC price repeatedly defending the $112,000 support level, with multiple bounces from this zone in August.
If this support were to hold, Martinez expects Bitcoin to stage a recovery, testing resistance around $118,000 before making another push toward $120,000.
A break below $112,000, that has happened in over the past hour, results in a deeper correction, that is why traders are closely looking at our latest Bitcoin (BTC) price analysis for today, August 24, 2025.
Bitcoin Dominance Weakens as Altcoins Gain
Another development has been the drop in Bitcoin dominance, which fell from the 60% range to near 50%. One analyst argued that this shift could mark the start of a second wave of altcoin season, as capital rotates from Bitcoin into Ethereum, Solana, and other top altcoins.
Ethereum has already come close to breaking its all-time high, while Solana surged past key resistance levels and is now eyeing the $280 to $300 range. If Bitcoin consolidates at current levels, the door could open for a broader altcoin rally in the coming days.
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