The cryptocurrency market took a nosedive as Bitcoin plummeted below the $110,000 mark in late August 2025, touching lows of $108,734 to $108,890 and wiping out nearly $200 billion in total market capitalization.
The primary catalyst for this dramatic decline was a massive whale sell-off involving 24,000 BTC—worth over $2.7 billion—which triggered a cascade of selling across the market.
Bitcoin had initially rebounded to $117,000 following the Jackson Hole speech but quickly erased those gains as technical breakdowns occurred.
The loss of critical support levels between $112,000 and $110,000 amplified the downside pressure, sending Bitcoin’s current price to $110,185, representing declines of 2.83% daily, 7% weekly, and 11% monthly from its all-time high of $124,533.
The sell-off intensity was further evidenced by approximately $900 million in leveraged liquidations within 24 hours—the largest such event year-to-date.
Think of it as a financial game of Jenga; once that big whale pulled their block, the entire tower became wobbly, triggering automatic selling as traders’ stop-losses and margin calls kicked in.
Technical indicators aren’t painting a rosy picture either. Bitcoin remains below its 100-hour Simple Moving Average, with recovery attempts limited by resistance at $110,750 and $112,500.
The MACD shows negative divergence—essentially the crypto equivalent of your car’s check engine light flashing ominously.
If price fails to break above the key resistance levels, additional declines toward the $107,200 support zone seem likely.
Ethereum wasn’t spared in this market correction, dropping approximately 8% alongside Bitcoin.
The strong correlation between the two largest cryptocurrencies remains intact, with no signs of Ether decoupling from the Bitcoin-led downtrend.
This recent correction mirrors a similar pattern when Bitcoin previously experienced a 10% drop to $82,000, highlighting the market’s ongoing volatility.
Market sentiment has rapidly shifted from greed to fear, with the Fear and Greed Index dropping to between 44 and 48.
Long-term investors appear to be holding steady, while short-term holders are experiencing average unrealized losses of 3.5%.
Institutional investors are reportedly eyeing the $100,000 level as a potential re-entry point, which aligns with the 200-day moving average currently positioned at approximately $100,887.
