Bitcoin Erases Powell Rally in Flash Crash After Whale Offloads 24,000 BTC
Bitcoin’s weekend rally was abruptly cut short Sunday as a large-scale sell-off triggered a sharp drop in price, wiping out gains from Friday’s dovish remarks by Federal Reserve Chair Jerome Powell.
BTC briefly spiked above $116,900 following Powell’s Jackson Hole speech but reversed course early Sunday, falling more than 2% to $112,546 in under ten minutes by 07:40 UTC. Prices dipped below $111,000 before recovering to around $112,800 at last check.
Whale Dump Sparks Crash
Blockchain data from Timechainindex.com revealed that a single whale was behind the flash crash, liquidating 24,000 BTC—worth over $300 million—into low-liquidity market conditions. The BTC was sent to crypto exchange Hyperunite in several transactions, with 12,000 BTC transferred just on Sunday.
“The address in question had been inactive since receiving BTC from HTX nearly six years ago,” said Timechainindex researcher Sani. “The whale still holds around 152,874 BTC across associated wallets, suggesting further downside risk if selling continues.”
Powell-Induced Optimism Fizzles
The sudden crash reversed a bullish reaction to Powell’s Friday speech, where he signaled openness to rate cuts and downplayed long-term inflation concerns tied to U.S. tariffs. Markets responded with a broad risk-on move: BTC rallied nearly 4%, U.S. stocks gained, and the dollar weakened.
Analysts had speculated that a September rate cut could open the door to fresh all-time highs for bitcoin and ether. But the weekend volatility has cast doubt on the durability of that thesis.
Options Traders Still Cautious
Despite Powell’s tone, derivatives markets remain hesitant. Data from Amberdata shows 25-delta risk reversals on Deribit—used to gauge relative demand for bullish versus bearish options—remain negative across expiries into December.
This indicates traders are still favoring downside protection, with put options trading at a premium to calls. The positioning reflects persistent caution and expectations of continued volatility.
