Quick Drop Driven by a Whale Selling Off Around 24,000 BTC
Avinash Shekhar, Co-Founder and CEO of Pi42, said, “The $200 billion wipeout across crypto markets reflects how quickly sentiment can reverse. Bitcoin’s drop to a 6-week low highlights the outsized impact of whale movements and shifting macro cues. Holding above key support levels will be critical now, especially as institutional interest remains a stabilizing force in the long term.”
CoinSwitch Markets Desk highlighted that, “Ethereum briefly peaked at an all-time high near $4,900, lifted by institutional demand and ETF flows. August has seen $2.5 billion in ETF inflows into Ether alone, even as Bitcoin funds suffered outflows. Despite its rally, ETH wasn’t immune: a near 6 percent retreat from the peak underscores rising volatility and profit-taking, while derivatives data reveals elevated short interest amid a resilient long-term bullish narrative.”
The sell-off also impacted altcoins on Tuesday. Solana, Cardano, and Dogecoin faced double-digit losses. The CoinDCX research team said: “Bitcoin breaks down below the crucial support at $110,000, posing a threat to the upcoming bullish cycle. With this, the top altcoins like Ethereum, XRP, Solana, Dogecoin, and Cardano experience a massive pullback.”
However, some analysts see signs of resilience. Edul Patel, Co-founder and CEO of Mudrex, said: “Bitcoin is trading at $110,000 as bulls attempt to regain control. Despite this, Bitcoin futures open interest climbed to an all-time high, up 13 percent from two weeks earlier. Institutions are buying the dip, accumulating about 3,081 BTC. On the downside, BTC could test the $105,000 support before a relief rally.”
While traders await Powell’s next move and a possible rotation into Ethereum, analysts say the next few sessions could decide whether Bitcoin steadies or expects support at $105,000 (roughly Rs. 92.17 lakh).
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