Whale Sell-Off Sends Crypto Market into Tailspin, $900M in 24-Hour Liquidations

Late August 2025 has marked a sharp bearish turn in the cryptocurrency market, driven by extreme volatility and large-scale liquidations. Bitcoin’s price has fallen below $115,000, a stark decline from its recent record high of $122,838 in mid-July. The downturn has been intensified by a major sell-off initiated by a long-dormant whale account, which has moved over 30,000 BTC—valued at more than $3.5 billion—onto major exchanges such as Binance and OKX. According to blockchain tracking platforms, this activity is part of a larger 80,201 BTC stash, with 22,610 BTC transferred in a single day [1]. This move has raised widespread concerns about a broader market correction and triggered panic among leveraged traders.

The impact is evident in the derivatives market, where open interest has fallen sharply alongside widespread liquidations. On Binance, net taker volume has turned bearish, reflecting growing fear among traders. Coinglass data indicates that total liquidations over the past 24 hours have exceeded $900 million, a more than 300% increase compared to the previous day [6]. In late July and early August, over $600 million in liquidations were recorded, with Bitcoin alone triggering more than $700 million in long-position losses [3]. Ethereum also suffered, with $226 million in losses reported following key support level breakdowns.

The bearish pressure has spread beyond Bitcoin and Ethereum. XRP fell below $3, erasing billions in market value overnight and prompting panic selling across major exchanges [1]. The token’s volatility has sparked debates about the viability of yield-generating strategies tied to it, as many investors had expected more stability.

Despite the broad market downturn, a few smaller tokens have managed to buck the trend. MAGACOIN FINANCE, for example, has seen a 10% increase in value amid the slump, drawing interest from smart money traders [4]. However, these gains remain isolated and have not significantly offset the overall bearish momentum.

Market participants remain divided on the outlook. While some, including Binance, point to historical resilience in Ethereum during bearish cycles, others, such as Eric Trump, suggest that the current dip could present a buying opportunity [4]. However, the lack of immediate buyer interest means that downward pressure on XRP and Ethereum may persist, potentially extending the bearish phase.

The inflow of large BTC volumes into centralized exchanges has triggered automated selling and fear-based reactions among both retail and institutional investors. If more major holders decide to follow the whale’s lead, the market could quickly test critical support levels, deepening the bearish phase.

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[1] https://coinmarketcap.com/community/articles/688f2ade31f6e26bea19324b/