The cryptocurrency king, Bitcoin 
$76,429, experienced a significant drop in value following a brief weekend surge. Its price fell to approximately $111,000 within the day. This shift occurred after the price rally on Friday when Bitcoin traded above $117,000, following the speech by Federal Reserve Chairman Jerome Powell hinting at a potential rate cut in September. Analysts indicate that large holders are selling off Bitcoin, redirecting their positions towards Ethereum 
$2,262, contributing to the decline.
Understanding the Bitcoin Plunge
Rumors circulating on social media platform X suggest that a single whale sold over 24,000 BTC between August 16-24. According to WhaleWire CEO Jacob King, screenshots showed the wallet 19D5J…WoZ1C executing numerous sales ranging from 3,000 to 6,000 BTC. King pointed out that these sales triggered a chain reaction of panic, with a significant portion of the funds being moved to Ethereum, resulting in $2 billion in ETH purchases and $1.3 billion in staking.
Vincent Liu, Chief Investment Officer of Kronos Research, highlighted that pinpointing a single cause for the decline is challenging. He suggested that the movements are more likely due to multiple whales or high-balance exchanges. Liu noted that the sudden rise post-Powell’s speech thrived on weak liquidity, and once leverage was reduced and no fresh catalyst emerged, momentum faded, causing BTC to drop below critical levels. Nick Ruck, Director at LVRG Research, described the decline as a recalibration in a market clouded by uncertainties, despite dovish tones.
Shift from Bitcoin to Ethereum Continues
In recent weeks, some large wallets have noticeably reduced their Bitcoin holdings in favor of Ethereum. Lookonchain reports that a whale rotated part of its 100,784 BTC holdings for 62,914 ETH and opened a derivative long position with 135,265 ETH. On the institutional side, there is a similar trend. August saw limited activity in spot Bitcoin ETFs, whereas Ethereum ETFs recorded relatively stronger inflows.
Liu mentioned, “Staking approval for Ethereum ETFs is on the horizon,” expecting increased staking activity and relative outperformance in altcoins, possibly positioning Ethereum at the center stage. Ruck also highlighted the trend of high-volume investors shifting from BTC to ETH, supporting an increase in the share of Ethereum in institutional reserves.
Moreover, Bitcoin’s market dominance dropped from around 61% at the start of the month to 57.94%. Ethereum, which set a record last Friday at over $4,946, is currently trading around $4,712. Short-to-medium-term volatility for Bitcoin and the broader cryptocurrency market is anticipated, with critical macro data, including Thursday’s Jobless Claims, expected to impact prices.
According to CoinMarketCap data, Bitcoin has dropped 2.12% in the last 24 hours, trading at $112,316, while Ethereum has fallen by 1.80%, currently trading at $4,683.
