Bitcoin Flash Crash Wipes Out $550M in Liquidations as Market Rotates Toward Ether
A sudden Bitcoin selloff over the weekend triggered more than $550 million in liquidations, as a large whale offloaded 24,000 BTC into thin liquidity, reversing gains seen after Fed Chair Jerome Powell’s dovish Jackson Hole speech.
Whale Activity Sparks Rapid Decline
Bitcoin briefly plunged below $111,000 on Sunday, down sharply from Friday’s $114,000+ highs. The catalyst: a single entity transferred and sold 24,000 BTC—worth over $300 million—through Hyperunite, according to blockchain data cited by CoinDesk. The liquidation erased optimism from Powell’s rate-cut-friendly remarks and unleashed a cascade of forced selling.
Widespread Liquidations Across Crypto
Over $238 million in BTC positions and $216 million in ETH were liquidated, contributing to more than $550 million in total crypto market liquidations within 24 hours. Flash crashes of this nature often result from high leverage in illiquid weekend markets, creating vulnerability to large sell orders.
While such long-side liquidations can reset positioning for a more sustainable recovery, analysts caution that sentiment remains fragile.
Ethereum Outperforms as Rotation Accelerates
In contrast to Bitcoin’s slump, Ether remained comparatively resilient, trading near $4,707 with a weekly gain of 9%. Analysts suggest this reflects growing rotation from BTC into ETH, driven by expectations that the Fed’s next policy move could boost Ethereum more significantly due to its smaller market cap and expanding use case.
“Ethereum is better positioned to benefit from a liquidity-driven rally,” said BTSE COO Jeff Mei. “Its structural role in smart contracts and tokenization gives it more upside if capital inflows return.”
Institutions Favoring ETH Over BTC
SignalPlus’s Augustine Fan noted a rising share of Ethereum in treasury portfolios and a recovery in the ETH/BTC ratio, signaling stronger institutional demand. Samir Kerbage, CIO at Hashdex, said Ether’s breakout reflects deeper adoption, not just short-term speculation.
“ETH’s new all-time high is a clear sign that it’s no longer just a retail narrative,” Kerbage added.
With Ether up 45% year-to-date and increasingly integrated into financial infrastructure, analysts are beginning to revisit the $10,000 price target once viewed as overly ambitious.
