$550M Liquidation Wave Hits Crypto Markets After Bitcoin Whale Dump, While Ethereum Strengthens
A sharp weekend selloff in Bitcoin triggered over half a billion dollars in crypto liquidations, underscoring the fragility of leveraged positions and sparking renewed debate around capital rotation into Ethereum.
Bitcoin Flash Crash Erodes Powell-Fueled Gains
Bitcoin fell sharply below $111,000 on Sunday in a flash crash that erased gains from Friday’s dovish remarks by Fed Chair Jerome Powell. The move followed a massive sell order from a whale who offloaded 24,000 BTC—worth over $300 million at the time—into illiquid market conditions.
The whale transferred the entire balance to Hyperunite, with 12,000 BTC moved on Sunday alone, accelerating the downward pressure. BTC briefly touched $111,000 before recovering to $112,800 by Monday morning in Asia.
Over $550 Million in Liquidations
The sudden drop triggered widespread liquidations totaling more than $550 million. Bitcoin positions accounted for $238 million, while Ether (ETH) saw $216 million in forced selling, according to market data.
Analysts say long liquidations often help reset overheated markets, potentially paving the way for a more sustainable rebound. Conversely, clusters of short liquidations can ignite the next leg higher during recovery phases.
Ethereum Holds Ground as Rotation Narrative Builds
Despite Bitcoin’s pullback, Ether remained resilient, trading at $4,707 and posting a 9% weekly gain. The divergence is fueling speculation of a continued shift in institutional capital from BTC to ETH, especially as investors prepare for a potential Fed rate cut in September.
“Ethereum’s smaller market cap gives it greater upside potential in an environment of increasing liquidity,” said Jeff Mei, COO at BTSE. “If the Fed eases, we could see outsized moves in ETH and other altcoins.”
SignalPlus’s Augustine Fan noted that Ethereum treasuries are expanding relative to BTC, with the ETH/BTC ratio rebounding to technically significant levels.
Institutional Momentum Behind ETH
Institutional interest appears to be playing a larger role. Samir Kerbage, CIO at Hashdex, said, “Ethereum’s new highs reflect real demand beyond Bitcoin. It’s becoming a core part of traditional finance infrastructure.”
With Ethereum continuing to lead in areas like tokenization, stablecoins, and smart contracts, many analysts believe the $10,000 target—once seen as ambitious—may now be within reach. ETH has already surged 45% year-to-date.
